Repeal and saving repeals the Income-tax (Amendment) Ordinance, 2026, while preserving actions taken and matters done under it. Such actions and matters are deemed to have been undertaken under the corresponding provisions of the Taxation and Other Laws (Amendment) Act, 2026.

Central Government has revised the territorial extent of the multi-product Special Economic Zone at Baikampady, near Mangalore, in Dakshin Kannada district, Karnataka. Under the Special Economic Zones Act, 2005 and rule 8 of the Special Economic Zones Rules, 2006, 27.0093 hectares have been added and 1.1558 hectares have been de-notified. The revised SEZ area is 596.5615 hectares, comprising specified survey parcels in Permude and Bajpe for addition and Thokur for de-notification.

Section 3 of the Finance Act, 2026 differentiates domestic companies that are special purpose vehicles referred to in Schedule V from other domestic companies under the relevant entries in sub-sections (4) and (12). Domestic companies other than such special purpose vehicles are subject to a 10% rate, while qualifying special purpose vehicles are subject to a 25% rate.

Money-laundering investigation under the Prevention of Money Laundering Act involves fresh searches connected with Cochin Minerals and Rutile Ltd and Exalogic Solutions. The inquiry concerns alleged fraudulent payments made under the guise of IT consultancy services and a purported money trail involving persons allegedly connected with those transactions. The action follows earlier searches and questioning in relation to the same matter.

Money-laundering investigation under the Prevention of Money Laundering Act concerns alleged irregularities in veterinary officers' final selection through a public recruitment examination. Searches covered premises linked to commission officials, alleged intermediaries, the digital evaluation entity, and selected candidates. Allegations include bribery demands, examination-paper leakage, OMR answer-sheet tampering, and facilitation of selection for relatives of commission officials.

Schedule V conditions for activities not constituting a business connection in India are amended by omitting clause (b) in column D against serial number 5 of the Table. The omission alters the conditions applicable to the specified activity for determining whether it constitutes a business connection in India.

Schedule IV expands income exemptions for qualifying foreign entities, subject to prescribed information-furnishing requirements. Foreign Institutional Investors and the Bank for International Settlements may receive exemption for interest on Government securities and related capital gains. From 1 October 2026, qualifying foreign companies may obtain exemptions for sales of rough diamonds in notified special zones and for component sales from custom bonded-area warehouses to contract manufacturers of specified electronic goods. The diamond and component exemptions remain available through the tax year ending 31 March 2041, subject to stated eligibility and operational conditions.

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.