TAX AMENDMENT BILL 2026

The Lok Sabha has passed the Taxation & Other Laws (Amendment) Bill, 2026 (‘Amendment Bill’). The said Amendment Bill replaces the Income-tax (Amendment) Ordinance, 2026 which was earlier passed on 5 June 2026 and also proposes other amendments to the Income-tax Act, 2025 (‘the Act’), the most notable amendment being in respect of taxation of unitholders and SPVs of business trusts.

SC confirms omission of Rule 96(10) applies to even pending proceedings absence any saving clause

 This Tax Alert summarizes a recent judgement of the Supreme Court (SC)^[1] dealing with the effect of omission of Rule 96(10) of the Central Goods and Services Tax Rules, 2017 (CGST Rules) on any proceedings pending disposal on the date of such omission.

Rule 96(10) inter alia restricted any person from claiming refund of integrated tax paid on export of goods or services if benefit of specified exemption notifications was availed. The said rule was omitted w.e.f. 8 October 2024^[2].

Subsequently, the Gujarat High Court (HC)^[3] held that such omission will be applicable to all proceedings/cases which are pending for final adjudication either before courts or adjudicating authorities. Revenue filed an appeal before SC.

The key observations of the SC are:

Delhi HC holds 10% pre-deposit requirement for penalty-only appeals inapplicable where SCN was issued before amendment

 This Tax Alert summarizes a recent ruling of the Delhi High Court (HC)^[1] on whether the newly introduced pre-deposit requirement for filing an appeal against penalty-only order applies where the show cause notice (SCN) was issued before 1 October 2025, while the adjudication order was passed thereafter.

The key observations of the HC are:   

Karnataka HC holds HSNS Cess framework unconstitutional due to manner of Cess calculation

 This Tax Alert summarizes a recent ruling of the Karnataka High Court (HC) ^[1] on the constitutional validity of Health Security se National Security Cess Act, 2025 (HSNS Cess Act), the Health Security se National Security Cess Rules, 2026 (HSNS Cess Rules) and the notifications issued thereunder.

The key observations of the HC are:

GSTN keeps proposed e-Way Bill enhancements on hold until further notice

 This Tax Alert summarizes the recent advisory¹ issued by Goods and Services Tax Network (GSTN) keeping the proposed enhancements to the e-Way Bill system on hold until further notice.

The key observations of the HC are:

TAX DUE DATE - AUGUST 2026.

 

Sl. No	Due Date	Related to	Compliance to be made
1	11.08.2026	GST	Filing of GSTR – 1 for the month of July 2026
2	31.08.2026	Income Tax	Filing of Form 10 of Charitable Trust
3	13.08.2026	ISD	Filing for the month of July 2026
4	20.08.2026	GST	Payment & filing of GST return for the Month of July 2026 - Form GSTR 3B
5	07.08.2026	TDS/TCS (Income Tax)	· Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of July 2026. · Deposit TDS from Salaries deducted during the month of July 2026 Deposit TCS for collections made under section 394 including sale of scrap during the month of June 2026 if any Deliver a copy of Form 121(15G/15H), if any to CCIT or CIT for declarations received in the month of June 2026, if any

The Forensic Ledger: Spotting Early Warning Signals of Employee Embezzlement in Small Businesses

-Sakshi Agarwal 

 Let’s start with a small story in this regard. Client B runs a highly successful, medium-sized manufacturing firm that produces industrial packaging. Because he spent most of his time on the factory floor and pitching to new clients, he entrusted his entire back-office operations to Mr. A, a loyal senior accountant who had been with the company for over a decade. Mr. A was considered part of the family; he rarely took vacations, worked late on weekends, and single-handedly managed vendor payments, payroll, and bank reconciliations.

Kentucky Sales Tax Changes Effective August 1, 2026: What Businesses Need to Know

 

Kentucky has introduced several important sales and use tax developments that take effect August 1, 2026. If your business sells products or services into Kentucky—especially digital offerings or through remote sales channels—now is a good time to review your compliance obligations.

Here are the key updates:

Protecting Taxpayer Rights: Three Landmark Indian Tax Rulings

 Recent judicial pronouncements have provided significant clarity on the rights of taxpayers and the limitations of tax authorities under Indian tax law. Three important rulings—from the Supreme Court on GST input tax credit, the Chennai ITAT on income tax penalties, and the Mumbai ITAT on demergers—offer crucial guidance for businesses navigating complex tax disputes. Each decision reinforces the principle that tax authorities must act within statutory boundaries and cannot penalize taxpayers arbitrarily.

Mauritian Cabinet approves ratification of Protocol to India-Mauritius DTAA introducing Principal Purpose Test condition

 The India-Mauritius DTAA, which entered into force on 1 April 1983, was amended by way of Protocol signed on 10 May 2016 ^[1] (2016 Protocol), wherein largely the source country taxation rights were enhanced and Limitation of Benefits (LOB) clause was included apart from the Exchange of Information (EOI) and Assistance in Collection of Taxes related provisions. The 2016 Protocol did not contain the Base Erosion and Profit Sharing (BEPS) related changes.

Delhi HC holds secondment reimbursements taxable as Fees for Included Services (FIS) under India–USA tax treaty

 The Delhi High Court (HC) ^[1] has recently ruled in favor of the Revenue on the issue of taxability of cost reimbursements received by a foreign Taxpayer from Indian entities in respect of secondment of employees. The HC held that such receipts are taxable as Fees for Included Services (FIS) under Article 12 of the India–USA Double Taxation Avoidance Agreement (‘the treaty’) as the secondment arrangement satisfied the “make available” test.

Calcutta HC upholds validity of GST adjudication order digitally signed within limitation, despite subsequent portal upload

 This Tax Alert summarizes a recent ruling of the Calcutta High Court (HC) ^[1] on whether an adjudication order under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act), which was digitally signed within the prescribed limitation period but uploaded on the common portal thereafter, can be treated as validly issued order, enforceable in law.

GST Invoice Rejected in IMS After Tax Paid? Here’s Your Complete Action Plan

 1. The Core Solution: Coordinate with Your Customer and Re-Report

The GST law provides a very clear and straightforward remedy for this situation. The system is designed to capture the "delta" (the net change) rather than penalizing you for a one-off rejection. The golden rule here is reconciliation, not refund.

The most efficient and widely recommended solution involves a simple two-way coordination between you (the supplier) and your customer (the recipient).