Schedule I sets conditions for eligible investment funds and eligible fund managers to ensure specified fund-management activities do not constitute a business connection in India. The fund must be non-resident, established outside India in an eligible jurisdiction, maintain Indian resident participation within the prescribed limit, and neither conduct nor control business in India. The fund manager must be appropriately registered, independent, act in the ordinary course of fund-management business, and remain within the prescribed profit-entitlement limit. Annual compliance reporting and further prescribed disclosures are required.

Joint Commissioners of State Tax in Taxpayer Services Districts are authorised under the first proviso to rule 23(1) of the Kerala Goods and Services Tax Rules, 2017, to extend the time limit for filing an application for revocation of cancellation of registration.

Section 10A of the Payment and Settlement Systems Act, 2007 is amended to replace the reference to electronic payment modes prescribed under the Income-tax Act with a framework under which the Central Government may specify one or more electronic modes of payment by notification. The substitution takes effect from publication in the Official Gazette.

Taxation and Other Laws (Amendment) Act, 2026 amends the Payment and Settlement Systems Act, 2007, the Income-tax Act, 2025, and the Finance Act, 2026. It is generally deemed to have come into force on 1 April 2026, subject to any contrary commencement provision.

Late fees otherwise imposable for delayed filing of Bills of Entry are waived for consignments covered by Import General Manifests filed on 1 and 2 February 2021, where filing was affected by ICES system downtime for Budget updation. ICES services for Bills of Entry were enabled after updation on 3 February 2021, and implementation is to be treated as a standing order for officers and staff.

Operational preparedness for full land-based export-import operations at Vizhinjam Seaport was reviewed, including the Vehicle Traffic Management System. EXIM cargo operations follow a trial shipment of the port's first export container to Valencia. Mission Samudra is proposed to support port-led industrial and logistics development alongside these operations. The deep-water port was developed through a public-private partnership model and had obtained commercial commissioning certification before its dedication to the nation.

Special Bench order adverse to the assessee could not stand because it reaffirmed an earlier view that had been set aside by the controlling High Court decision. The governing precedent displaced the basis for the Special Bench's reasoning, requiring reconsideration in conformity with that decision. The impugned order was therefore set aside and remitted for fresh determination on the applicable legal position, with the assessee succeeding on this issue.

The Headquarters Review Cell examines original adjudication, first appellate, and revisional orders for legality or propriety and prepares specified proposals for Commissioner approval. The Additional Commissioner, TPS Headquarters, may direct subordinate officers to apply to the Appellate Authority or Appellate Tribunal for review of relevant orders. Where orders are issued by the Additional Commissioner (Appeals) or the Additional Commissioner, TPS Headquarters, Tribunal-appeal proposals require Commissioner approval. The Legal Cell examines Tribunal, High Court, and Supreme Court orders and prepares High Court and Supreme Court appeal proposals.

Kerala grants a full State GST exemption on specified intra-State supplies of goods from 22 September 2025, replacing the prior exemption regime while preserving earlier acts and omissions. Covered goods include basic unprocessed food, agricultural produce, seeds for sowing, animal feed, selected health products, educational materials, traditional goods and specified public-interest supplies. Many food and agricultural entries exclude goods that are pre-packaged and labelled. Classification follows the Customs Tariff framework, and specified conditional exemptions apply to lottery supplies, grant-funded supplies by Government entities, and qualifying government auction sales.

Kerala State Goods and Services Tax rates for intra-State supplies of goods are structured through seven tariff-based schedules. State tax applies at 2.5%, 9%, 20%, 1.5%, 0.125%, 0.75%, and 14%, depending on the goods classification and applicable conditions. The schedules cover specified food, agricultural, medical, industrial, consumer, transport, precious-metal, tobacco and actionable-claim categories. Classification follows the Customs Tariff framework, including interpretative rules and notes. Entries may depend on packaging, labelling, value, intended use, composition, supply recipient or other stated conditions. The revised rate structure takes effect from 22 September 2025.

GST recovery pending a statutory appeal may warrant interim protection where more than 10% of the assessed demand has been recovered and the required appeal pre-deposit has been made. Further coercive recovery may be restrained, and attachment of the proprietor's bank account may be lifted to enable business operations, subject to maintaining sufficient balance and bank monitoring. The merits of the GST demand, including input tax credit availability, remain for the Appellate Authority. Recovery may resume in accordance with law if the appeal is dismissed and the demand is upheld.

Cancellation of a supplier's GST registration or closure of business does not, by itself, defeat a purchaser's input tax credit entitlement; the department must establish collusion between the supplier and purchaser. Alleged fraudulent input tax credit availment was not prima facie supported where there was no material showing foundational supplier violations, and subsequent supplier non-existence or registration cancellation was insufficient. Anticipatory bail was granted because the petitioners lacked criminal antecedents, had appeared before authorities, and undertook to cooperate and produce documents; custodial interrogation was not warranted merely because the allegations involved an economic offence. Release was subject to investigation-cooperation and appearance conditions.

Under the UPGST Act, State circulars are described as placing penalty proceedings under Section 122 within the framework of Section 127 and authorising the Deputy Commissioner of State Tax where the prescribed turnover threshold is met. A jurisdictional objection to a penalty show-cause notice was therefore considered prima facie untenable. The doctrine of election also applies where a taxpayer participates in proceedings on merits without raising a jurisdictional objection and challenges the adverse penalty order through writ jurisdiction. The taxpayer should pursue the statutory appellate remedy, with Limitation Act relief for the writ-pendency period available subject to statutory requirements.

Condonation of delay in a GST appeal against retrospective cancellation of registration was granted to restore the appellate remedy. Following Ritik Acharya, whose applicability was not disputed, the High Court considered merits-based adjudication appropriate. The appellate order dismissing the appeal as time-barred was set aside, and the Appellate Authority was directed to entertain and decide the appeal on merits.

Intra-firm stock transfers between premises of the same registered person, without distinct entities or consideration, do not constitute supply and do not create tax liability. Consequently, detention penalty under section 129, which is quantified by reference to tax payable on the goods, is not leviable where no tax is payable. Absence of an e-way bill alone does not establish that such movement is non-genuine where there is no allegation or material of fraud, wilful misstatement, suppression or non-genuineness. A document-related breach during movement otherwise than for supply may instead attract the specific penalty provision for e-way bill contraventions.

Section 129(3) of the CGST/KGST Act requires a proper officer to pass a penalty order within seven days of serving a detention notice for goods in transit. The use of "shall" is treated as mandatory because the provision governs coercive detention and seizure powers, even though no express consequence is specified for delay. A penalty order issued forty-seven days after notice was treated as beyond the prescribed limitation and without jurisdiction. The resulting penalty and appellate orders were set aside, with consequential release of the bank guarantee.

Section 171(1) requires GST rate reductions to produce a commensurate reduction in the price payable by cinema-ticket recipients; charging GST at the reduced rate alone is insufficient where the operator increases the pre-tax base price and retains the same cum-tax fare. Regulatory permissions concerning maximum or proposed ticket fares do not displace this independent anti-profiteering obligation, particularly without competent approval of enhanced rates. Profiteering may be quantified by retaining the pre-rate-reduction base price, applying the reduced GST rate to determine the commensurate price, and comparing it with actual ticket sales. Where recipients cannot be identified, the determined amount with applicable interest is deposited in the Consumer Welfare Funds; no penalty applied for the investigation period.

Section 171(1) requires GST rate-reduction benefits on cinema admission tickets to be passed to recipients through a commensurate reduction in cum-tax ticket prices. Retaining the same ticket price by increasing the pre-tax base price does not satisfy this obligation. Directions permitting collection of proposed cinema fares and representations to licensing authorities do not create an exception to the anti-profiteering requirement, particularly where approval is unsubstantiated or relates to later periods. Profiteering may be quantified by retaining the pre-reduction base price, applying the reduced GST rate to determine the commensurate price, and calculating excess collections from actual ticket sales, while excluding correctly accounted transactions at other rates.

PTFE braided gland packing manufactured from PTFE fibre yarn for industrial stuffing-box sealing is classified as an article of plastic under HSN 39209949, rather than as a textile article for technical use under HSN 5911. Plastic monofilament exceeding the specified cross-sectional dimension is excluded from Section XI and falls within Chapter 39; braiding and industrial use do not alter that result. Clear statutory tariff headings, Section and Chapter Notes, and HSN Explanatory Notes prevail over industry practice and trade parlance. The product falls within the residual PTFE sub-heading under heading 3920 and attracts GST at 18%.

Section 10B requires separate computation of export profits for each eligible software-export undertaking only to quantify the deduction. That separate computation does not alter the undertaking's profit or loss for computing combined income, nor does it displace the normal rules for inter-source and inter-head set-off and carry forward of losses. Losses of a Section 10B-eligible undertaking may therefore be set off against profits of other undertakings, with any unabsorbed balance carried forward in accordance with law. The contrary denial of set-off was set aside.