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May 5, 2026
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Insurance penetration strategy focuses on wider coverage, stronger underwriting, digital expansion and improved service delivery.
Operational review of the Vision Strategy documents of LIC, GIC Re and OICL focused on medium-term and long-term planning for improving operational efficiency, financial stability and sustainable growth. Strategic directions were given to strengthen human resource and information technology frameworks to enhance service delivery and to align company policies with broader insurance-sector objectives. Insurance policy direction emphasized increasing insurance penetration and density while preserving market share, with a focus on widening coverage to a larger segment of the population and developing investment and underwriting strategies to reduce loss ratios.
May 5, 2026
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Non-food credit growth accelerated across sectors as banks saw broad-based demand from agriculture, industry, services and personal loans.
Scheduled commercial banks recorded robust non-food credit growth in FY 2025-26, with broad-based expansion across agriculture and allied activities, industry, services, and personal loans. The credit increase was supported by low interest rates, a government-backed capex cycle, structural reforms, and crowding-in of private investment. Agriculture benefited from sustained rural demand and improved formal credit flow, while industrial credit was led by micro and small industries and services growth was driven by non-banking financial companies, trade, and commercial real estate.
May 5, 2026
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AI and blockchain workforce verification strengthens attendance integrity, reduces ghost employee fraud, and supports offline public-sector operations.
Indian Railways has begun deploying DRISHTI, an AI- and blockchain-enabled smart workforce management system, to verify employee attendance through facial recognition and tamper-proof digital records. The system operates offline, can verify multiple workers from a single group photograph, and is intended for both field and office personnel. It creates permanent, unalterable attendance records while also supporting supervisor approvals, real-time reporting dashboards, task allocation, and leave management.
May 5, 2026
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Banking judgment and public purpose shape credit, supervision and financial stability beyond numbers and models.
Banking is presented as a field that must be understood through knowledge, judgment and public purpose, not through numbers, models or regulations alone. Economics supplies concepts such as incentives, information asymmetry, moral hazard, adverse selection and systemic risk, while the banking counter shows how credit appraisal depends on reading signals in cash flows, management quality, borrowing patterns and growth. Supervision is contrasted with the banker's viewpoint and is directed to safety, soundness, governance and the wider public interest.
May 4, 2026
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Direct tax collections rise despite tax cuts, with stronger corporate tax growth and stable non-corporate receipts.
Net direct tax collections increased in FY26 but fell short of the revised fiscal target after income tax relief measures were introduced in the budget. The changes included a higher rebate, revised tax slabs and rates, and a higher standard deduction, with collections showing stronger corporate tax growth, stable non-corporate tax receipts, and slightly lower refund issuance.
May 4, 2026
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Direct tax collections rise with stronger gross receipts and lower refunds, though the revised target remains unmet.
Net direct tax collections for 2025-26 rose 5.12 per cent to over Rs 23.40 lakh crore, but remained below the revised estimate of Rs 24.21 lakh crore. CBDT data showed net corporate tax collections at Rs 10.99 lakh crore and personal income tax, including Securities Transaction Tax, at about Rs 12.41 lakh crore. Gross direct tax collection stood at about Rs 28.12 lakh crore, while refund issuance declined 1.09 per cent to Rs 4.71 lakh crore.
May 4, 2026
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LNG storage capacity expansion gains urgency as supply disruptions and geopolitical risk expose India's energy security vulnerabilities.
India is seeking to increase LNG storage capacity in response to supply disruptions and heightened geopolitical risk affecting imports from West Asia. Petronet LNG plans to add new storage tanks at multiple terminals to strengthen buffer capacity and maintain normal supplies if import flows are interrupted. The expansion is presented as part of broader efforts to support energy security and manage future crisis conditions through additional strategic reserves.
May 4, 2026
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Loan waiver fraud warnings highlight false waiver claims, deceptive certificates, fee collection, and the need to avoid such entities.
Unauthorised and misleading campaigns promising loan waivers are cautioned against, including false claims of waiver of dues to banks or NBFCs, issuance of debt waiver certificates, and collection of fees under service or legal charges. The public is advised not to associate with such persons or entities, to approach lending institutions directly for loan information, and to report such campaigns to law enforcement agencies.
May 4, 2026
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Context-driven digital payments reshape spending as UPI, credit cards and EMIs serve different consumer needs.
India's digital payments are increasingly context-driven, with consumers choosing instruments according to ticket size, urgency, intent and time of day rather than relying on a single dominant mode. UPI continues to support everyday and high-value payments, while structured credit and EMIs are expanding into routine and recurring expenses. Payment behaviour also varies by timing, and merchants are increasingly offering multiple payment options to align with consumer intent and improve conversion.
May 4, 2026
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Aadhaar verification and identity proof concerns require legislative intervention for issuance safeguards and misuse prevention.
Legislative intervention and amendments in the existing legal framework are required for reliefs seeking restrictions on Aadhaar issuance and related safeguards. The petition also sought directions treating Aadhaar only as proof of identity, while alleging misuse through weak verification, diversion of public resources, and improper access to other identity records.
May 4, 2026
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Economic vulnerability mapping gains focus as India weighs supply disruption risks, energy dependence and inflation pressure from global shocks.
India must strengthen economic vulnerability mapping and risk management across energy, food, fertilisers, metals and critical minerals to address supply disruptions and price volatility arising from geopolitical shocks. The commentary emphasises expanding physical buffers, including strategic petroleum reserves and stockpiles of essential commodities, while reducing excessive import dependence through diversified supply sources, trade routes and more effective use of free trade agreements. It also notes that fiscal, monetary, trade and supply-side interventions, supported by an emergency response mechanism, are being used to cushion external shocks.
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Specialized Investment Fund launch combines portfolio flexibility, transparency, and risk discipline for experienced investors.
HSBC Mutual Fund has launched RedHex SIF in India as a SEBI-approved Specialized Investment Fund brand for investors seeking greater portfolio flexibility within a regulated mutual fund framework. The platform offers focused, outcome-oriented strategies with transparency, governance, oversight, and risk discipline, and is aimed at experienced, institutional, and high-net-worth investors subject to a minimum investment threshold and higher investment risks.
May 4, 2026
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NATO burden-sharing and trade friction shape Europe's response as troop withdrawal and tariff pressure test transatlantic ties.
European leaders said the planned withdrawal of United States troops from Germany showed that Europe must take greater responsibility for its own security within NATO. They called for the move to be handled within the alliance framework and for the European pillar in NATO to be strengthened. The article also noted fresh trade friction, including plans for higher United States tariffs on cars and trucks from the European Union, alongside the bloc's emphasis on free trade agreements and stable supply chains.
May 4, 2026
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Commercial wisdom in insolvency bid evaluation upheld as creditors may assess feasibility beyond headline value.
Challenge to approval of a corporate insolvency resolution plan for Jaiprakash Associates Ltd. turned on the Committee of Creditors' evaluation of competing bids, including preference for Adani Enterprises' plan over Vedanta Ltd.'s revised offer. The controversy concerned transparency, evaluation metrics and whether post-deadline bid revisions could be considered in the insolvency process. The tribunal found no material irregularity and treated the CoC's decision as commercial wisdom based on overall consideration of the competing plans.
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Supreme Court and NCLAT spotlight procedural discipline, transgender law challenge, and insolvency bid selection dispute.
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FDI norms eased for foreign companies with limited Chinese or Hong Kong stake, subject to sectoral conditions and reporting.
India eased FDI norms to allow foreign companies with Chinese or Hong Kong shareholding of up to 10 per cent, or a non-controlling stake, to invest under the automatic route in sectors where foreign investment is permitted, subject to applicable sectoral conditions. The revised framework retains reporting obligations and uses the beneficial ownership concept drawn from the Prevention of Money Laundering Rules, 2005. It also preserves expedited clearance for specified manufacturing activities while requiring majority Indian ownership and control.
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Section 80G donation deduction rules define eligible donees, deduction limits, cash restrictions, and verification requirements.
Section 80G allows deduction for donations to specified funds, charitable institutions, and approved bodies, subject to category-wise limits of 100% or 50% deduction, with or without a 10% adjusted gross total income cap. Eligibility depends on the donee being within the statutory list and, where required, meeting prescribed approval and compliance conditions. Cash donations above the prescribed amount are not deductible, the same donation cannot be claimed again under any other provision, and the donor must verify the donee's registration and reported information before claiming the benefit.
May 4, 2026
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Commercial wisdom in insolvency resolution plan selection shapes creditor choice over competing bids for Jaiprakash Associates.
Challenge to an insolvency resolution process for Jaiprakash Associates Ltd. centred on the Committee of Creditors' selection of Adani Enterprises' resolution plan over Vedanta's competing bid. The tribunal treated the CoC's decision as an exercise of commercial wisdom based on overall assessment of the resolution plans and found no material irregularity in the Resolution Professional's conduct of the process. The dispute arose in the CIRP context after approval of Adani Enterprises' resolution plan by the adjudicating authority.
May 4, 2026
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International trade education and policy research highlighted as IIFT marks its Foundation Day with new institutional initiatives.
The Indian Institute of Foreign Trade marked its 63rd Foundation Day with official appreciation of its role as an autonomous institution in advancing India's international trade, management education, policy research, and capacity building. The commemorations highlighted its expanding academic and institutional presence across New Delhi, Kolkata, Kakinada, and GIFT City, along with campus growth, alumni engagement, and new academic initiatives. The event also emphasized multilingual course offerings, a new website for improved accessibility and digital engagement, major conferences, research-led innovation, student recognition, and acknowledgment of retired employees and long-serving staff.
May 4, 2026
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Debt recovery tribunal reforms advance through e-filing, hybrid hearings, capacity building, and faster disposal measures.
Department of Financial Services convened a colloquium of DRAT Chairpersons and DRT Presiding Officers to strengthen the debt recovery framework through policy dialogue, reform, and performance enhancement. The discussion focused on reducing pendency, accelerating disposal of cases, capacity building, targeted training, and sharing of best practices across tribunals. Key measures included mandatory e-filing, hybrid hearings, e-DRT 2.0, stronger bank oversight, prioritisation of high-value cases, use of Lok Adalats and mediation, and the BAANKNET e-auction platform.

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Filing of Annexure-B for Refund Applications involving Accumulated ITC using the offline utility in GST portal

May 19, 2026

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Until now, while filing refund applications under specific categories involving accumulated Input Tax Credit (ITC), taxpayers were uploading Annexure-B in a PDF format, in terms of extant guidelines. In order to further automate the refund filing process and enable system-based verification of invoices and documents, a standardized Annexure-B Offline Utility has now been deployed on the portal. In order to bring uniformity, taxpayers are required to furnish Annexure-B through this prescribed utility going forward.

Taxpayers are advised to carefully note the following instructions while filing refund applications under the below mentioned refund categories where refund is claimed on account of accumulated Input Tax Credit (ITC).

1. Introduction of Annexure-B in Offline Utility for following categories

Annexure-B is required to be furnished through an offline utility for the following refund categories:

  • Exports of Goods/Services without payment of tax (accumulated ITC) (excluding electricity)
  • Supplies made to SEZ Unit/SEZ Developer without payment of tax
  • ITC accumulated due to Inverted Tax Structure [Clause (ii) of first proviso to section 54(3)]
  • Export of Electricity without payment of tax (accumulated ITC)

2. Annexure-B Offline Utility

An offline utility in Excel format has been introduced to enable taxpayers to enter invoice-wise details of inward supplies for which refund is claimed. The details in the offline utility are required to be reported HSN/SAC-wise, by segregating invoices into separate line items based on distinct HSN/SAC codes and categories of input supplies (Inputs, Input Services, Capital Goods), wherever applicable.

Further, all other columns in the utility must be filled specifically with respect to the HSN/SAC code and category of input supply reported in that line item, including the corresponding taxable value, tax amount, and whether such ITC is blocked under section 17(5) of the CGST Act or otherwise. A maximum of 10,000 entries can be made in one offline utility file. If there are more than 10,000 entries, the user should use multiple offline utility files to enter the data.

3. Structure of Annexure-B Offline Utility

The utility contains the following two tables:

  • Table 1 – Reversal Details
  • Table 2 – HSN/SAC-wise Inward Invoice Details for which ITC has been claimed in GSTR-3B

4. Reporting of Invoices with Multiple Categories / HSN-SAC Codes

In cases where a single invoice includes: Multiple categories of supplies such as Inputs, Input Services, and Capital Goods, and/or Multiple HSN/SAC codes

  • Taxpayers are required to split the invoice into separate line items in the offline utility.
  • Each line item must represent only one category of input supply mapped to one HSN/SAC code.
  • Invoice value and tax amounts must be proportionately distributed across such line items.

A specific note has been added in the Read Me section (Point 6) of the utility for taxpayer guidance. Users are requested to read these instructions clearly before entering the data in the utility to avoid validation errors.

5. Duplicate Document Validation

(Validation is applied separately for each type of inward supply and each document type):

  • Supplier GSTIN
  • Invoice Number
  • Invoice Date
  • Category of Input Supply
  • HSN/SAC

For the same invoice, where the category of input supply and HSN/SAC are identical, only one line item should be reported.

Multiple entries under identical parameters will not be accepted.

6. Reporting of ITC Reversals

Taxpayers are required to correctly report ITC reversals as applicable:

  • Reversals made under Rules 38, 42, 43 of the CGST Rules and section 17(5) shall be reported as per the corresponding month’s GSTR-3B.
  • Other ITC reversals reflected in Table 4(B)(2) of GSTR-3B shall also be reported accordingly.
  • In cases where multiple offline utility files are used, reversal amounts shall be entered only in the final utility file, with all previous utility files reflecting reversal amounts as zero. The system recalculates the consolidated Net ITC after upload of all JSON files. Taxpayers are advised to review the consolidated summary carefully prior to submission.

7. Uploading Annexure-B JSON File

Upon generation of the Annexure-B JSON file, the taxpayer shall upload the same on the RFD-01 screen by clicking on the hyperlink “Click to upload the Statement of invoices (Unutilized ITC)” and proceed further for validation.

8. Post-Upload Validation and Reports

  • Uploaded invoices shall be validated with GSTR-2B.
  • Where validation against GSTR-2B is performed, results shall be displayed in the Valid documents sheet, indicating whether the invoices are present in GSTR-2B or not.
  • In respect of invoices pertaining to GSTR-2B periods up to October 2024 or earlier, the system will not carry out validation with GSTR-2B data. However, taxpayers will be allowed to enter details of such invoices in the utility and upload on the portal. In such cases, the system will display a generic message indicating that the invoices are not validated, however, these invoices will be part of the validated documents. This is an expected system behavior and shall not be treated as an error. Taxpayers may proceed with filing the refund application in such scenarios.
  • Any mismatches or validation failures in invoices pertaining to November 2024 or later period, shall be reflected in an Invalid documents Report.

9. Following details may be noted in respect of the Annexure B offline utility, namely :

  • Copy-paste functionality has been enabled for dropdown values in the offline utility. While using this feature, users must ensure that the value that user if copying and pasting must match with the exact dropdown value. Any deviation, including leading or trailing spaces, may result in validation errors. Additionally, users should not paste data into any frozen/protected fields, as this may lead to processing or validation issues.
  • Before using the newly downloaded utility, users should ensure that any previous version of the Annexure B Offline Utility is completely closed. Keeping an older version open simultaneously may cause issues with the enhanced copy-paste functionality.
  • Users are advised to avoid using unnecessary spaces while entering or copy-pasting data (for example, extra spaces after supplier name or in other fields), as such inconsistencies may result in errors during JSON generation or upload.
  • Users are requested to ensure that no changes are made directly to the JSON file after it has been generated. In case any modifications are required, the same should be made in the offline utility, followed by revalidation and generation of a fresh JSON file for upload. Further, the name of the JSON file should not be altered after creation, as this may lead to upload issues.

10. Line-Item Upload Limit in offline utility uploaded with Refund Applications

Present system functionality allows taxpayers to enter up to 10,000 line items in one offline utility file and upload up to 25 such files, i. e. a total of 2,50,000 line items can be entered in a single refund application. In cases where the number of line items exceeds this limit, taxpayers should upload up to 2,50,000 line items through the offline utility, and the remaining invoices can be submitted as supporting documents after converting them into PDF format. Approaches to support higher-volume data ingestion are being evaluated and will be implemented in upcoming enhancements.

Taxpayers are requested to ensure accurate reporting in the offline utility to facilitate smooth and timely processing of refund applications. A detailed user manual along with screenshots explaining the process will be shared shortly.

Thanks,
Team GSTN

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Acts Income Tax