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April 2, 2026
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Export obligation discharge certificates see accelerated disposal under a special drive to clear backlog and ease exporter compliance.
The Directorate General of Foreign Trade conducted a time-bound special drive for expeditious issuance of Export Obligation Discharge Certificates under the Advance Authorisation and Export Promotion Capital Goods schemes, with daily monitoring by senior officials to accelerate closure of export obligations and improve trade facilitation. The drive was designed to support an exporter-friendly ecosystem by enabling release of bank guarantees and bonds, reducing grievance burden, and strengthening compliance monitoring under the foreign trade framework. In view of the campaign's results, the special drive was extended for a further two months with fresh guidelines. The extension continues the administrative effort to expedite EODC disposal, support timely closure of export obligations, and reduce the operational burden on exporters.
April 2, 2026
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Conditional customs duty concessions for SEZ to DTA clearances impose value addition, cap limits, and anti-double-benefit safeguards.
Conditional customs duty concessions are notified for clearance of goods manufactured in Special Economic Zones to the Domestic Tariff Area, subject to a ceiling of 30 per cent of the highest annual Free on Board export value in the preceding three financial years. Eligible units must satisfy minimum 20 per cent value addition, obtain a Development Commissioner's certificate, and comply with audit requirements, while export benefits such as duty drawback on inputs are barred to prevent double benefits.
April 2, 2026
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Lower or nil tax deduction certificate process under income tax law through electronic Form 128 filing and approval.
Form No. 128 is the electronic application under the Income-tax Act, 2025 for a certificate authorising lower or nil deduction of tax at source and lower collection of tax under section 395(1) and section 395(3). It may be filed by resident or non-resident applicants seeking reduced TDS or TCS on specified income, and requires applicant details, tax liability particulars, income estimates, supporting financial information, and payer/TAN details where applicable. The form is processed electronically, and any approved certificate can be shared with the payer for application of the authorised rate during its validity.
April 2, 2026
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Lower or nil tax deduction certificate through TRACES requires advance electronic filing, PAN, and supporting documents.
Form No. 128 is the electronic application for a certificate authorising lower or nil deduction of income-tax and lower collection of income-tax under section 395(1) and section 395(3) of the Income-tax Act, 2025. The form is optional, must be filed through the TRACES portal before the relevant transaction, and cannot be processed once the TDS/TCS transaction is completed. It requires PAN, supporting documents, and electronic submission with e-verification.
April 2, 2026
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Tax collection at source declaration for non-trading use of goods enables buyers to obtain goods without TCS.
Form No. 127 is the declaration required from a buyer to obtain goods without collection of tax at source where the goods are intended for manufacturing, processing, production, or generation of power and are not meant for trading. The buyer must furnish the declaration to the seller at or before the purchase or payment event, and the seller must verify the declaration, upload monthly details to the e-filing portal by the 7th of the following month, and forward the declaration to the tax authority.
April 2, 2026
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TCS exemption declaration for specified goods requires PAN, timely filing, and seller reporting obligations.
Form No. 127 is a buyer's declaration under section 394(2) of the Income-tax Act, 2025 for obtaining specified goods without collection of tax at source. A resident buyer may furnish the declaration to the seller where the goods are intended for manufacturing, processing, producing articles or things, or generating power, and not for trading. PAN is mandatory, the declaration must be furnished on or before the date of transaction, and once received the seller must report the particulars and include the transactions in the quarterly TCS statement.
April 2, 2026
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Tax deduction relief for non-resident branch operations through a unified Form No. 126 compliance framework.
Form No. 126 is a unified self-declaration and treaty-benefit request for specified non-residents carrying on business or profession in India through a branch to obtain a certificate for receipt of certain sums without deduction of tax at source. Banking companies and insurers, and other eligible non-resident persons, must satisfy the conditions in Rule 209, including tax compliance, branch-based receipt on own account, and, for non-banking applicants, continuous business in India for five years and prescribed fixed assets. The application is filed electronically, processed by the Assessing Officer, and the certificate remains valid for the relevant tax year unless cancelled earlier.
April 2, 2026
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Rupee recovery follows RBI cap on banks' net open position amid capital outflows and crude-driven pressure.
Rupee recovered in early trade after the Reserve Bank of India capped banks' net open position in the onshore forward delivery market and required compliance by April 10, 2026. The currency remained under pressure from foreign capital outflows, a stronger dollar, rising crude oil prices, geopolitical volatility, widening trade deficit, declining remittances and sustained foreign portfolio investor selling.
April 2, 2026
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Customs duty exemption on critical petrochemical imports aims to stabilise supply chains and ease cost pressures.
Full customs duty exemption has been granted on specified critical petrochemical imports as a temporary and targeted measure to protect supply stability amid disruptions in global supply chains caused by the West Asia crisis. The exemption is intended to ensure continued availability of essential petrochemical inputs for domestic industry, reduce cost pressures on downstream sectors, and provide relief to consumers of final products. The exemption remains valid until June 30 and covers Methanol, Anhydrous ammonia, Toluene, Styrene, Dichloromethane, Vinyl chloride monomer, Poly butadiene, Styrene butadiene and Unsaturated polyester resins.
April 2, 2026
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GST fraud through fake firms and fake invoices exposed alleged illegal input tax credit claims and circular trading.
GST fraud involving fake firms, shell companies, fake invoices and circular trading was detected during a police investigation. The alleged racket used fake Aadhaar and PAN details to unlawfully avail input tax credit and underreported sales in GST returns, causing an estimated loss of around Rs 3 crore to the government exchequer, with the total involvement suspected to be higher. One accused was arrested, while efforts continued to trace other persons involved.
April 1, 2026
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GST revenues rise on stronger imports and domestic sales, marking one of the highest monthly collections this fiscal.
GST revenues rose about 9 per cent in March to over two lakh crore rupees, reaching the third highest monthly collection in the 2025-26 fiscal. The increase was supported by higher receipts from imports as well as domestic sales and purchases, reflecting a recovery in tax mop-ups after earlier tax cuts.
April 1, 2026
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State GST collection growth in Haryana leads the country, driven by stronger compliance, economic activity and taxpayer base expansion.
State GST collection growth in Haryana was reported as the highest among all states in FY26, with post-settlement SGST collection rising to Rs 48,289 crore from Rs 39,743 crore in FY25. The increase of 21.5 per cent exceeded the national average SGST growth of 5.7 per cent. Total GST collection in the State also grew by 8.6 per cent, placing Haryana fifth among states and Union Territories in gross domestic GST collection.
April 1, 2026
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Insolvency resolution framework tightened to speed up admissions, reduce delays, and support rescue of viable businesses.
Parliament has amended the Insolvency and Bankruptcy Code to speed up admission and resolution of insolvency cases, reduce backlog, and preserve enterprise value. The changes introduce stricter timelines, greater reliance on information utilities, stronger liquidation oversight, and an enabling framework for group and cross-border insolvency. The bill also replaces the underused fast-track process with a creditor-initiated framework, exempts MSMEs from disqualification under specified provisions, and requires insolvency applications to be admitted within 14 days once default is established.
April 1, 2026
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Tax devolution dispute intensifies as Karnataka alleges unfair GST returns, denied compensation, and shrinking fiscal share.
Karnataka Chief Minister Siddaramaiah alleged that the Union Government's tax devolution and fiscal policy towards Karnataka amounted to tax terrorism or tax plunder, saying the state receives only a small share in return for its tax contribution. He said Karnataka has repeatedly raised concerns about unfair distribution of taxes, cess, surcharge revenues, GST compensation, and central funding, and claimed these issues have weakened the state's finances and increased dependence on borrowing. He also described GST implementation as flawed and unscientific, leading to significant financial losses.
April 1, 2026
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Money laundering probe leads to searches, cash seizure and firearm recovery in Kolkata-linked premises.
Money laundering investigation under the Prevention of Money Laundering Act led to searches at multiple premises in Kolkata linked to an alleged criminal syndicate, including the residence and commercial premises of an accused history-sheeter, a business entity, and associated persons. During the raids, the Enforcement Directorate seized about Rs 1.2 crore cash from a location linked to one associate and recovered a country-made pistol from the accused's premises.
April 1, 2026
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Corporate resolution under insolvency law gains faster admission, stronger creditor oversight, and MSME promoter participation safeguards.
The Insolvency and Bankruptcy Code is presented as a framework for corporate resolution and banking-sector improvement through asset recovery, with liquidation remaining a residual measure where resolution fails. The current amendments focus on expeditious admission based on the existence of default, greater reliance on information utilities, statutory timelines, stronger liquidation oversight, and a creditor-initiated insolvency framework with out-of-court initiation, debtor-in-possession structure, and defined timelines. The amendments also enable group and cross-border insolvency and exempt MSMEs from specified disqualifications so that existing promoters may participate in resolution.
April 1, 2026
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Insolvency and bankruptcy reform debate centers on creditor haircuts, tribunal backlog, and concerns over corporate defaulter protection.
The Rajya Sabha debated the Insolvency and Bankruptcy Code (Amendment) Bill, 2026, amid criticism of repeated amendments, substantial creditor haircuts, alleged favouritism toward large corporate defaulters, and ongoing pendency and infrastructure bottlenecks in insolvency tribunals. Members raised concerns over proposed creditor-initiated insolvency changes, executive rule-making on cross-border insolvency, and the limited effectiveness of MSME resolution mechanisms, while others supported the Code and urged stronger institutional capacity and better use of insolvency funds.
April 1, 2026
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Tax deduction at source relief for branch-based non-residents through Form No. 126 and Assessing Officer certification.
Form No. 126 is an optional self-declaration and treaty-benefit request for a specified non-resident person carrying on business or profession in India through a branch, to obtain an Assessing Officer certificate authorising receipt of specified sums without deduction of tax at source. Eligibility depends on whether the applicant is a banking company or insurer, or another branch-based business or profession, and the form must be filed online before income is received. The certificate is valid for the relevant tax year unless cancelled earlier.
April 1, 2026
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Specified senior citizen declaration governs pension and interest income reporting, bank deduction, and return-filing exemption.
Form No. 125 is the declaration furnished by a specified senior citizen to the specified bank for pension and interest income. It applies to a resident aged seventy-five years or more who has pension income and only interest from the same specified bank, and who gives the prescribed declaration. The form is used by the deductor for reporting and is stated to exempt the taxpayer from return-filing compliance for the relevant tax year. It is filed once each financial year and requires key personal, bank, pension, and tax-regime details.
April 1, 2026
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Insolvency and Bankruptcy Code amendments aim to speed resolution, cut backlog, and strengthen the financial ecosystem.
Amendments to the Insolvency and Bankruptcy Code were passed to accelerate insolvency resolution, reduce case backlog, and strengthen the financial ecosystem. The changes focus on shortening the time taken for admission of insolvency resolution applications and improving the efficiency of the resolution framework. The government accepted all recommendations made by the Lok Sabha Select Committee and added one further recommendation from the Ministry of Corporate Affairs.

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Customs & Trade

The latest: Rubio says major military operations against Iran over

May 6, 2026

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Washington, May 6 (AP) US Secretary of State Marco Rubio said Tuesday that major US military operations against Iran are over — but he stopped short of saying the conflict cannot be restarted. Rubio told reporters at the White House that “Operation Epic Fury” — the attack the US and Israel mounted on Iran on Feb. 28 — “is concluded” because its objectives were met.

Rubio said recent clashes with Iran related to US efforts to reopen the Strait of Hormuz were “defensive in nature.” “We're not cheering for an additional situation to occur,” he said. “We would prefer the path of peace.” He said Iran must agree to President Donald Trump's demands on its nuclear program and reopen the strait, a waterway vital to global oil and gas supplies.

US forces pressed ahead with an effort to guide commercial ships through the strait, but so far only two vessels are known to have passed through. Defence Secretary Pete Hegseth said the US prefers a peaceful effort to guide vessels out of the Persian Gulf but is ready to act if needs change.  It is unclear what will follow. Hegseth said the ceasefire reached nearly a month ago is not over. The United Arab Emirates, a key US ally, said it was defending against more Iranian strikes. A spokesman for Iran's joint military command denied striking the UAE “in recent days.” Here is the latest: Rubio says war with Iran is over, peace is still elusive   Rubio says the major US military operation against Iran is over but is stopping short of saying the conflict is over or cannot be restarted.

Speaking to reporters at the White House, Rubio said that “Operation Epic Fury” — the attack the US and Israel mounted on Iran on Feb. 28 — “is concluded” because the objectives of the mission were all successfully concluded.

“We're not cheering for an additional situation to occur,” he said. “We would prefer the path of peace.” In order for that to happen, Iran must agree to Trump's demands on its nuclear program and reopen the Strait of Hormuz, he said.

Rubio says he hopes Chinese officials talk to Iran about the strait   As Iranian Foreign Minister Abbas Araghchi prepares to visit China on Wednesday, Rubio says that he hopes Tehran's allies in Beijing reiterate the need for Iran to release its chokehold on the critical waterway as the fragile ceasefire continues.

“I hope the Chinese tell him what he needs to be told,” Rubio said. “And that is that what you are doing in the strait is causing you to be globally isolated. You're the bad guy in this.” The secretary went on to argue that China, more than the US, is suffering from Iran's actions in the strait, saying that China's export-driven economy depends on shipments going through Hormuz.

“It is in China's interest that Iran stop closing the strait,” he added.

Rubio says many countries want to help open Hormuz but some lack the ability to do so   Asked what the global appetite is for the US effort to reopen the strait, Rubio says the issue has not been a lack of interest, but that not many are able to provide the assets and resources needed.

“The capabilities is the issue. A lot of countries would love to do something about it. But they don't have a navy, right? Or they can't get there in time. ...” he said.

He said the onus is on the US.

“The primary responsibility for this Project Freedom is on the United States, because we're the only country that can project power in that part of the world,” he said. “This is a favour to the world because it's their ships that are stranded.” Rubio downplays rift between Trump and Pope Leo ahead of visit to Vatican   Rubio is downplaying the rift between President Donald Trump and Pope Leo XIV over Iran ahead of a key visit the top US diplomat will make to Vatican City this week.

Rubio told reporters at the White House on Tuesday that Trump's recent criticism of the first American pontiff was rooted in his opposition to Iran potentially obtaining a nuclear weapon, which could be used against millions of Catholics and other Christians around the world.

Trump “doesn't understand why anybody — leave aside the pope — the president and I, for that matter, I think most people, I cannot understand why anyone would think that it's a good idea for Iran to ever have a nuclear weapon,” Rubio said.

Rubio says Iran claims of not wanting a nuke are not backed up by actions   Rubio says Iranian claims of not wanting to develop nuclear weapons are belied by its actions.

Rubio said Tuesday that Iran must make a choice between war and peace, but that peace will require a convincing demonstration that the Iranian government won't attempt to pursue nuclear arms.

Rubio told reporters at the White House that Iran's development of advanced centrifuge technology, its enrichment of uranium and construction of underground bunkers made clear the government was not serious about its no-nukes pledge.

We're not attacking them': Rubio echoes message that Strait of Hormuz operation is defensive only   Rubio on Tuesday reiterated that US efforts to reopen the strait are not an offensive operation despite clashes with Iran in the last several days.

“There's no shooting unless we're shot at first, OK? We're not attacking them. We're not,” Rubio told reporters. “If they pose a threat to our forces, we'll shoot down drones, we'll shoot down missiles. But it's defensive in nature.” So far, only two merchant ships are known to have passed through the new US-guarded route, with hundreds more bottled up in the Persian Gulf. Shippers are still wary, and it's unclear whether US military action can reassure them without reigniting the conflict that began with US and Israeli strikes on Iran on Feb. 28.

US coming to aid of civilian sailors left for dead,' Rubio says   Rubio said about 23,000 civilian sailors are stranded in the Persian Gulf and “left for dead” as Iran chokes the Strait of Hormuz.

Speaking at a White House press briefing on Tuesday, he said the US military effort to guide ships through the strait aims to help those sailors.

“They're sitting ducks, they're isolated, they're starving, they're vulnerable,” Rubio said. “At least 10 sailors have already died as a result.” He said the sailors come from 87 countries and are innocent bystanders.

“It's criminal for sure, but it's desperate and destructive to block the Strait of Hormuz,” he said.

Pope Leo calls out Trump's misrepresentation of his views on Iran and nuclear weapons   Speaking to reporters Tuesday, Leo said the Catholic Church “for years has spoken out against all nuclear weapons, so there is no doubt there.” Trump again accused Leo in an interview on Tuesday of being “OK for Iran to have a nuclear weapon.” Leo has said no such thing, and Catholic Church teaching says the mere possession of nuclear weapons is “immoral.” Leo doubled down on his insistence that his call for peace and dialogue in the U.S-Israeli war in Iran is Biblically inspired.

“I've spoken from the first moment of being elected, and we're near the anniversary: I said Peace be with you,'” Leo said as he left his country house in Castel Gandolfo.

“The mission of the church is to preach the Gospel, to preach peace. If someone wants to criticise me for announcing the Gospel, let him do it with the truth,” Leo said. “And so I hope simply to be listened to about the value of the Word of God.” Italy defends Pope Leo XIV against Trump's criticism   Italy is again defending Pope Leo XIV and his call for peace and dialogue in the Iran war against President Donald Trump's latest criticism.

Foreign Minister Antonio Tajani said in a social media post on Thursday that President Donald Trump's attacks “are neither acceptable nor helpful to the cause of peace.” “I reaffirm my support for every action and word of Pope Leo; his words are a testament to dialogue, the value of human life, and freedom. This is a vision shared by our government, which is committed through diplomacy to ensuring stability and peace in all areas where conflicts exist,” Tajani wrote.

Trump on Tuesday renewed his criticism of Leo's peace message over the Iran war and warned Leo was “endangering a lot of Catholics and a lot of people.” Trump's criticism, in an interview with conservative commentator Hugh Hewitt, came even as his secretary of state, Marco Rubio, prepares to visit Italy and the Vatican ostensibly to ease tensions with Washington.

Rubio is due to meet with Leo on Thursday and is due to see Tajani and Premier Giorgia Meloni on Friday.

Trump offers an optimistic take on China's position on Iran   The president in an exchange with reporters said that China hasn't “challenged” him as he continues to press Iran, even as Beijing has repeatedly criticised the US and Israel military action against Iran.

“You know, in all fairness, he gets, like, 60 per cent of his oil from (the Strait of) Hormuz,” Trump said of President Xi Jinping.

China, in fact, imported about half its crude oil and almost one-third of its liquefied natural gas from the Middle East, according to China's General Administration of Customs.

Trump offered a more measured take than Treasury Secretary Scott Bessent, who a day earlier said the administration wants to see Beijing “step up” and pressure Iran to open the strait. Bessent in an interview with Fox News said Iran would be high on Trump's agenda when he travels to Beijing next week for a summit with Xi.

Pakistan military urges restraint as US-Iran tensions rise   Pakistan's top military leadership on Tuesday urged restraint to help ease rising tensions between the United States and Iran.

The call came during a Corps Commanders Conference chaired by Army Chief Field Marshal Asim Munir.

Munir, since last month, has been in contact with the US and Iranian officials as part of Pakistan's efforts to end the conflict.

In a statement, the military said participants reviewed the evolving security environment amid Pakistan's outreach to Washington and Tehran, adding that lasting peace depends on collective restraint, responsibility and respect for sovereignty.

JD Vance woos Republican voters, including farmers who want the war to end   Vice President JD Vance heads to Iowa on Tuesday, his first visit since taking office, to the state where Republicans in less than two years will cast the initial votes to pick their party's next presidential nominee.

Seen as one of the GOP's strongest potential candidates for president in 2028, Vance stopped first in Cincinnati to vote in the primary, saying he picked Vivek Ramaswamy for governor. He's also holding a fundraiser in Oklahoma City as finance chair of the Republican National Committee.

Higher prices for gas and fertiliser, and Trump's tariffs have been hitting voters hard, and Vance's political prospects are complicated by the war in Iran. Vance has seemed a reluctant defender of the 9-week-old war, for which Trump has struggled to find an off-ramp.

Iowa's farmers have steadfastly supported the president, but they've been looking for assurances that the troubles won't last.

Rubio to brief at White House with press secretary on maternity leave   The secretary of state is putting on yet another Trump administration hat — White House spokesperson.

Rubio is scheduled to fill in on Tuesday for White House press secretary Karoline Leavitt, who is on leave awaiting the birth of her second child. His briefing is scheduled for 3 p.m. EDT.

The nation's top diplomat already doubles as Trump's national security adviser and for a while was the acting archivist of the United States and the acting administrator of the US Agency for International Development.

His last formal briefing for reporters was at the State Department briefing room in December.

Scuttlebutt around the White House has been that Rubio will be among a handful of high-level administration officials leading the press briefings while Leavitt is away.

Proposed UN resolution demands Iran halt attacks on ships in Strait of Hormuz and stop `illegal tolls'   The proposed Security Council resolution, co-sponsored by the United States and Gulf nations, threatens Iran with sanctions or other measures if it doesn't restore freedom of navigation and immediately disclose where sea mines have been placed in and around the vital waterway.

The draft, obtained Tuesday by The Associated Press, also demands that Iran “immediately participate in and enable the United Nations efforts to establish a humanitarian corridor in the strait” to enable vital aid, fertiliser, and other goods to transit.

The proposed resolution was drafted under Chapter 7 of the U.N. Charter, which can be enforced militarily. It threatens “effective measures that are commensurate with the gravity of the situation, including sanctions” if Iran doesn't comply.

A previous resolution aimed at opening the Strait of Hormuz, where about 20 per cent of the world's crude oil had transited, was vetoed by Russia and China.

Former military officers say reopening the strait remains a daunting task   Former military officers who have served on the Strait of Hormuz have said opening it would be dangerous and highly challenging, even with military escorts, which the US isn't providing now.

There's little room to manoeuvre in the narrow waterway, and Iran can reach all of the strait and its approaches with anti-ship cruise missiles. It also can target vessels with longer-range missiles, drones, fast attack craft and naval mines.

Experts say reducing the threat would involve targeting offensive installations on the ground inside Iran and having constant surveillance and patrols.

Insurance broker says it's too early to know how the US military effort will affect shipping through the strait  Marcus Baker, global head of marine, cargo and logistics for insurance broker and risk adviser Marsh Risk, said it would take a few days to see how the insurance market reacts.

“We just have to see what happens, whether the Iranians keep the peace, whether the Americans keep the peace, and exactly what that's going mean for shipping,” he said.

“There's rhetoric from both sides on this, and we've just got to be mindful of that,” he added. But he said, “anything that starts to increase certainty around safety has got to be a good thing.” One of the world's largest container shipping companies says Hormuz transits not yet possible   “At this point in time our risk assessment remains unchanged,” the Hamburg, Germany-based shipping company Hapag-Lloyd AG said in a statement. “Transits through the Strait of Hormuz are for the moment not possible for our ships.” UAE is under Iranian attack again, the defence ministry says   The United Arab Emirates is “actively engaging” with missile and drone attacks from Iran, the country's defence ministry said on X Tuesday evening.

It said sounds heard in parts of the Gulf federation are related to the interception of ballistic missiles, cruise missiles and drones.

Death toll in Lebanon reaches 2,702 since Israel-Hezbollah war began   The Health Ministry in Beirut said Tuesday that 8,311 people were wounded during the same period.

The latest Israel-Hezbollah war started on March 2, when Hezbollah fired rockets into Israel following the US and Israel's attacks on Iran.

A ceasefire has been in place since April 17, but both Israel and Hezbollah have been carrying out daily attacks since then. (AP) AMJ AMJ

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