Foreign portfolio investment circular withdrawn under RRA 2.0 recommendations to simplify rules and reduce reporting burden.
The Reserve Bank, following interim recommendations of the Regulations Review Authority (RRA 2.0), has withdrawn A.P. (DIR Series) Circular No.6 dated July 16, 2015 on Foreign Investment in India by Foreign Portfolio Investors with immediate effect. The measure is part of a regulatory streamlining initiative to reduce compliance and reporting burdens, revoke obsolete instructions, and simplify dissemination and implementation; the directions are issued under statutory powers without prejudice to permissions required under other laws.

GST classification clarifications: cloud kitchens, ice cream parlors, mining rights and other services assigned specific rates and exemptions.
Services by cloud/central kitchens are classified as restaurant service and taxed at 5% without ITC; ice cream parlors selling manufactured ice cream are supplies of goods taxed at 18%; government funded coaching under the disabilities scholarship scheme is exempt; satellite launch services to foreign recipients qualify as export and are zero rated; overloading fees at toll plazas receive the same treatment as toll charges; renting of vehicles to STUs/local authorities falls within "giving on hire" exemption; grant of mineral exploration and mining rights are classed under service code 997337 and taxed at the standard/residuary rate (18%) for 1.7.2017-31.12.2018; job work for alcoholic liquor is excluded from the concessional food job work rate and taxed at 18%.

Mandatory e-filing for Non-Preferential Certificate of Origin extended; agencies must onboard or face de-notification consequence.
The DGFT extends the transition period for mandatory e-filing of Non-Preferential Certificates of Origin on the e-CoO Common Digital Platform until 31st January 2022, allowing continued manual/paper submissions until that date. Agencies listed in Appendix-2E must complete onboarding by the deadline or face de-notification. Exporters are required to register on the platform and may seek assistance from the CoO Helpdesk via the Help Manual, service ticket, email, or toll-free numbers.

Penalty for minor e-way bill defects allowed where electronic documents demonstrate tax compliance prior to movement.
Where the person in charge of a conveyance carries documents prescribed under the rules but the case involves minor defects not intended for evasion of tax and the documents otherwise manifestly show tax liability, a penalty up to the prescribed limit per act may be levied. Tax invoices, bills of supply or delivery challans may be produced electronically (email, messaging apps or device display) showing receipt prior to commencement of movement with date and time, and Roving Squad officers shall not insist on physical copies when electronic production is available.

Income tax NOC is not required during voluntary liquidation under the Insolvency and Bankruptcy Code, preserving time bound completion.
No Objection Certificate or No Dues Certificate from the Income Tax Department is not required as part of the voluntary liquidation process under the Insolvency and Bankruptcy Code and the Voluntary Liquidation Regulations; Section 178 of the Income tax Act is subject to the Code, and obtaining NOC/NDC would delay the time bound completion of liquidation.

Radioactive contamination checks require preset alarm-based monitoring, isotope identification, and mandatory notification and repatriation measures.
Random radiation screening of imported metal scrap requires verification of a Pre-Shipment Inspection Agency certificate and importer-exporter assurance, measurement of background and container surface radiation with handheld monitors set to a preset alarm above background, and comparison with PSIA certificates or self-declarations. Exceedance of the alarm mandates isotope identification: NORM findings permit release; identification of other radionuclides requires immediate notification to nuclear emergency authorities, relocation to a cordoned area with monitoring and reporting, and initiation of repatriation or deportation, with costs borne by the importer or designated responsible person.

Territorial jurisdiction change: Navsari and Tapi districts reassigned from Ahmedabad Regional Authority to Surat Regional Authority.
Appendix 1A is revised to transfer Navsari and Tapi districts from the territorial jurisdiction of the Ahmedabad Regional Authority to that of the Surat Regional Authority, with the transfer taking effect immediately and otherwise leaving Gujarat State jurisdictions unchanged.

Authorization to issue Certificate of Origin expanded; two agencies enlisted and one agency's name and contacts amended.
Authorisation to issue Certificate of Origin (Non-Preferential) is expanded by adding two named export agencies to the official list of authorised issuers, enabling them to issue such certificates in their jurisdictions. Additionally, an existing agency entry is amended to correct the agency's name and update its telephone, email and website contact details.

Government-supported Line of Credit requires majority India sourcing, DPR appraisal, EDF shipment declaration and restricted commission payment.
Exim Bank's Government supported Line of Credit finances a Disaster Recovery Site subject to a DPR (cost 1% of credit); at least 75% of contract value must be supplied from India, up to 25% may be procured abroad; shipments must be declared in the Export Declaration Form; no agency commission payable from the LoC though exporters may pay commission from their own resources or EEFC balances with AD Category I banks permitting remittance after full export value realization; terminal utilization period is 60 months after scheduled project completion.

Pre-show cause notice consultation required for large excise and service tax demands; fraud-related cases are excluded.
The Circular reiterates that pre-show cause notice consultation is mandatory prior to issuing a show cause notice for demands above the prescribed threshold, except in preventive or offence-related proceedings, and that the consultation obligation lies with the SCN-issuing authority. Exclusion from consultation is case-specific, not formation-specific; consultation is not mandatory where proceedings arise from fraud, collusion, wilful misstatement, suppression of facts, or contraventions committed with intent to evade duties or taxes.

Refund of excise duty for diplomatic missions requires MEA verification then forwarding to Central Excise for sanction and interest rules apply.
Refunds of excise duty on petrol, diesel and fuel oil purchased by diplomatic missions and their officers remain available post-GST. Claims must be filed with the Ministry of External Affairs, which verifies and forwards them with recommendations to the jurisdictional Assistant/Deputy Commissioner of Central Excise for processing; claims require supporting certificates and cash memos. The filing limitation is one year from purchase measured from filing with MEA; sanction is required within three months of receipt, with interest under section 11BB for delay. MEA must forward claims within 30 days or bear interest liability for delays beyond that period.

Pre-Shipment Inspection Agency recognition adds a new authorized PSIA to issue PSICs subject to equipment and compliance.
M/s Hamilton Steel Logistics Inc is notified as a Pre-Shipment Inspection Agency authorized to issue Pre-Shipment Inspection Certificates under the Foreign Trade Policy provision, subject to the annexed list of approved and calibrated spectrometers and radiation survey meters. The Directorate may curtail the agency's validity; the agency must update membership certificates with industry bodies and its contact details within the prescribed period, and PSIC issuance is contingent on the listed equipment and calibration documentation.

RODTEP: Committee to set ceiling rates for AA/EoU/SEZ exports and request certified product-wise tax incidence data.
A Government-appointed Committee will determine ceiling RODTEP rates for AA/EoU/SEZ exports and produce a supplementary report limited to correcting apparent errors or anomalies. The Committee must engage stakeholders, compute central/state/local duty and tax incidence (including prior-stage cumulative indirect taxes and distribution-related embedded taxes), decide methodology, hold consultations and field visits, and furnish calculations and worksheets. Export councils and industry associations are required to submit certified, product-wise data for 01.10.2019-31.03.2020 in prescribed proformas, with documentary support, within prescribed short timelines.

Bank guarantees: issuance, monitoring and prompt honouring required under RBI prudential and compliance safeguards.
Consolidates RBI instructions on issuance, monitoring and honouring of bank guarantees and co acceptances: banks should prioritise financial guarantees, limit maturities (normally ten years), adopt Board approved policies for non constituent non fund facilities with full KYC/AML and credit appraisal, impose internal controls (dual signatures, reporting, periodic reviews), avoid large unsecured guarantees and guarantees enabling placement of funds with NBFCs, ensure prompt payment of invoked guarantees unless court restrained, and follow specific safeguards for export guarantees, overseas JV/WOS exposures, co acceptances and letters of credit while complying with FEMA and prudential norms.

Write-off of debt securities permitted for FPIs surrendering registration, allowing removal of unsaleable holdings from beneficiary accounts.
Permission is granted for Foreign Portfolio Investors who intend to surrender their registration to write-off debt securities in their beneficiary accounts that they are unable to sell; this extends the prior permission for write-off of shares and modifies Paragraph 17 of Part C of the earlier circular. Custodians are required to inform their FPI clients, and the circular is issued under the regulator's statutory powers.

FPI investment in debt now permitted for InvITs and REITs under specified frameworks, subject to applicable limits and conditions.
Permission is granted for Foreign Portfolio Investors to acquire debt securities issued by Infrastructure Investment Trusts and Real Estate Investment Trusts under the Medium Term Framework or the Voluntary Retention Route; such investments will be reckoned within applicable FPI debt limits and subject to the terms and conditions of those routes following amendments to the Foreign Exchange Management (Debt Instruments) Regulations.

Adjudication jurisdiction reallocation assigns tax notices and assessments to officers by pecuniary responsibility, restoring audit and intelligence roles.
The Commissioner assigns specific proper officer functions among tax cadres and permits exercise of powers over subordinates; Assistant State Tax Officers are tasked with risk based monthly return scrutiny and technical verification. Notices from Intelligence and Audit wings are to be transferred to jurisdictional assessment verticals for adjudication, with annual return scrutiny remaining with Audit. Adjudication of tax demands is reallocated by pecuniary jurisdiction so senior officers handle higher value cases; refund processing must be time bound with pre audit limited to arithmetic checks and legal issues addressed in post audit.

Return scrutiny risk parameters guide officers to archive or pursue enquiry and issue notices under ITC and outward-supply rules.
Circular prescribes uniform procedures for scrutiny of returns by flagging specific back-office risk parameters and detailing actions: archive cases lacking ASMT-10 where only certain parameters appear; seek replies via Form GST ASMT-11 or Part B of DRC-01A if notices are pending; issue nil-demand orders when Show Cause Notices are unquantified and defects require detailed enquiry. It sets substantive rules for ITC-related discrepancies (2A-3B and GSTR-9 Table 8D), temporal limits for ITC availment under Section 16(4), capital goods reversal under Rule 43, and verification steps for outward-supply mismatches, E Way Bill comparisons, and turnover versus TDS/TCS reconciliations.

GST classification of services clarified: rates, exemptions and export treatment for designated service categories clarified.
Services by cloud kitchens/central kitchens are classified as restaurant service and attract a reduced GST rate without ITC; ice cream parlors selling pre manufactured ice cream are supplies of goods and attract the standard GST rate; free coaching under the central scholarships scheme where total expenditure is borne by Government is exempt under the specified notification entry; satellite launch services by the government company to foreign customers constitute export of service and are zero rated where Place of Supply is outside India.

GST classification and rates clarified across goods categories, defining tax treatment for seeds, copra, henna, reagents.
Clarification of GST classification and rates: fresh fruits and nuts are exempt only when unprocessed and not dried or frozen; seeds are classifiable as sowing seeds but attract concessional tax when used otherwise; copra is excluded from coconut exemption and attracts concessional tax; pure henna powder and leaves without additives attract concessional tax; processed betel and coated cardamom attract higher tax; residues from brewing and distilling attract concessional tax; all pharmaceutical goods covered by the chapter note attract the concessional pharmaceutical rate; all laboratory reagents fall under the concessional reagents rate; procedural clarifications on essentiality certificates, separate treatment for UPS and batteries, deemed valuation for renewable projects, and uniform higher rate for fibre drums.