5 GST Judgments in 2026 Every Business Should Be Watching

The year 2026 has already delivered several landmark GST decisions that could significantly influence tax compliance, assessments, and litigation strategy. Businesses, tax professionals, and finance leaders should closely track the following developments:

PMS commission allowed as deductible expenses.

 In an important ruling in the case of Ameeta Jagdish Thackersey, the Mumbai ITAT has held that Portfolio Management Service (PMS) fees are deductible while computing capital gains under Section 48 of ITA, 1961. The ITAT noted that Coordinate Benches (Delhi, Mumbai, Pune etc) have taken divergent views on this issue. In the absence of a binding decision from the Jurisdictional High Court or the Supreme Court, the ITAT upheld the view favourable to the assessee. A one pager summary of the ruling is attached below.

The ruling is also a useful reminder that where genuine divergence exists in judicial interpretation, the benefit of a reasonable alternative view cannot ordinarily be denied to the taxpayer merely because the Revenue Authorites prefers the other interpretation.

Safe Harbour vs. Advance Pricing Agreements: Choosing the Right Path to Transfer Pricing Certainty

 While Safe Harbour focuses on standardization, an Advance Pricing Agreement (APA) provides a customized solution.

An APA is a binding agreement between a taxpayer and the tax administration that determines in advance the appropriate transfer pricing methodology, margins, critical assumptions, and pricing parameters for specified international transactions.

𝗗𝗲𝗳𝗲𝗿𝗿𝗲𝗱 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗱𝗼𝗲𝘀 𝗻𝗼𝘁 𝗺𝗲𝗮𝗻 𝗱𝗲𝗳𝗲𝗿𝗿𝗲𝗱 𝗮𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻: 𝗜𝗧𝗔𝗧 𝗮𝗹𝗹𝗼𝘄𝘀 𝗱𝗲𝗽𝗿𝗲𝗰𝗶𝗮𝘁𝗶𝗼𝗻 𝗼𝗻 𝗲𝗻𝘁𝗶𝗿𝗲 𝗥𝘀 𝟮𝟲𝟴 𝗖𝗿 𝗜𝗣𝗟 𝗙𝗿𝗮𝗻𝗰𝗵𝗶𝘀𝗲 𝗰𝗼𝘀𝘁

 Mumbai ITAT held that depreciation on Rajasthan Royals franchise rights is allowable on the entire acquisition cost of ₹268 crore, even though only ₹26.8 crore was paid during the year. Acquisition occurs upfront, while payment may be deferred. Any later adjustment in consideration would require corresponding WDV revisions

How Do Investors Choose Between CCPS and CCDs?

 At first glance, the distinction appears straightforward. Compulsorily Convertible Preference Shares (CCPS) are preference shares, while Compulsorily Convertible Debentures (CCDs) are debentures. Each is governed by separate provisions of the Companies Act, though the mechanics of issuance and conversion are largely comparable.

Refund of pre-deposit cannot be withheld merely because litigation continues on the balance demand

 In a significant judgment in IBM India Pvt. Ltd. v. Union of India (2026-VIL-955-BOM), the Bombay High Court has reaffirmed an important principle governing GST appeals and pre-deposits.

Taxability of Stock Option Buy-Backs: Salary or Capital Gains?

 . Introduction

Employee Stock Option Plans (ESOPs) are widely used to attract and retain talent by aligning compensation with performance. The lifecycle of an ESOP traverses five stages: grant, vesting, exercise, allotment, and sale. Each carries distinct tax implications.

S𝐮𝐜𝐜𝐞𝐬𝐬 𝐟𝐞𝐞 𝐩𝐚𝐢𝐝 𝐭𝐨 𝐚 𝐭𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐚𝐝𝐯𝐢𝐬𝐨𝐫 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐬𝐚𝐥𝐞 𝐨𝐟 𝐬𝐡𝐚𝐫𝐞𝐬 𝐢𝐬 𝐚𝐥𝐥𝐨𝐰𝐚𝐛𝐥𝐞 𝐰𝐡𝐢𝐥𝐞 𝐜𝐨𝐦𝐩𝐮𝐭𝐢𝐧𝐠 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐠𝐚𝐢𝐧𝐬.

 𝐁𝐚𝐧𝐠𝐚𝐥𝐨𝐫𝐞 𝐓𝐫𝐢𝐛𝐮𝐧𝐚𝐥in the case of Mohan Rajashekhar  𝐡𝐞𝐥𝐝 𝐭𝐡𝐚𝐭 𝐬𝐮𝐜𝐜𝐞𝐬𝐬 𝐟𝐞𝐞 𝐩𝐚𝐢𝐝 𝐭𝐨 𝐚 𝐭𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐚𝐝𝐯𝐢𝐬𝐨𝐫 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐬𝐚𝐥𝐞 𝐨𝐟 𝐬𝐡𝐚𝐫𝐞𝐬 𝐢𝐬 𝐚𝐥𝐥𝐨𝐰𝐚𝐛𝐥𝐞 𝐰𝐡𝐢𝐥𝐞 𝐜𝐨𝐦𝐩𝐮𝐭𝐢𝐧𝐠 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐠𝐚𝐢𝐧𝐬. 𝐓𝐡𝐞 𝐓𝐫𝐢𝐛𝐮𝐧𝐚𝐥 𝐡𝐞𝐥𝐝 𝐭𝐡𝐚𝐭 𝐰𝐡𝐞𝐫𝐞 𝐚𝐝𝐯𝐢𝐬𝐨𝐫𝐲 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬 𝐡𝐚𝐯𝐞 𝐚 𝐝𝐢𝐫𝐞𝐜𝐭 𝐧𝐞𝐱𝐮𝐬 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐭𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐞𝐱𝐩𝐞𝐧𝐝𝐢𝐭𝐮𝐫𝐞 𝐢𝐬 𝐢𝐧𝐜𝐮𝐫𝐫𝐞𝐝 𝐰𝐡𝐨𝐥𝐥𝐲 𝐚𝐧𝐝 𝐞𝐱𝐜𝐥𝐮𝐬𝐢𝐯𝐞𝐥𝐲 𝐢𝐧 𝐜𝐨𝐧𝐧𝐞𝐜𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐬𝐮𝐜𝐡 𝐭𝐫𝐚𝐧𝐬𝐟𝐞𝐫, 𝐭𝐡𝐞 𝐞𝐱𝐩𝐞𝐧𝐬𝐞 𝐢𝐬 𝐚𝐥𝐥𝐨𝐰𝐞𝐝 𝐚𝐬 𝐝𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧.

TAX DUE DATE - SEPTEMBER 2026

S. No	Due Date	Related to	Compliance to be made
1	11.09.2026	GST	Filing of GSTR-1 for August 2026.
2	13.09.2026	ISD	Filing for the month of Aug 2026
3	20.09.2026	GST	- Payment & filing of GST return for the Month of August 2026 - Form GSTR 3B

Key Changes in FEMA Export and Import Regulations Effective 1 October 2026

The Reserve Bank of India has introduced a new framework governing export and import transactions under FEMA. These regulations are effective from 1 October 2026 and will apply only to transactions initiated on or after that date. Transactions undertaken up to 30 September 2026 will continue to be governed by the earlier FEMA regulations.

SC holds extended period cannot be invoked if allegations are not justified in the show cause notice issued under section 74

 This Tax Alert summarizes a recent judgement of the Supreme Court (SC) ^[1] on whether a show cause notice (SCN) under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act) can be sustained merely on a generic allegation of fraud or concealment of facts, without the notice itself setting out the grounds for such allegation.

The Arbitrator’s Ledger: Financial Forensics in ODR

 Let’s start with a small story in this regard. Client B, a mid-sized electrical components manufacturer registered as an MSME, supplied materials worth ₹2.5 crore to Firm Y, a large infrastructure developer. After receiving the goods, Firm Y delayed the payments well beyond the agreed credit period. Frustrated, Client B filed a delayed payment claim against Firm Y on the government's MSME ODR portal. The dispute was referred to an Online Dispute Resolution (ODR) platform. To counter the claim, Firm Y suddenly produced a complex web of internal debit notes, backdated emails, and quality rejection reports, arguing that the materials were defective and no payment was due. The sole arbitrator was faced with hundreds of digital documents and conflicting accounting entries. This is exactly where CA X was brought in as a financial forensic expert to decode the ledger.

Gujarat HC upholds levy of GST on corporate guarantee while reads down mandatory 1% valuation where actual consideration is lower

 This Tax Alert summarizes a recent ruling of the Gujarat High Court (HC)1 on the taxability of corporate guarantee provided by the Petitioners on behalf of their related party located in India and the constitutional validity of Rule 28(2) of the Central Goods and Services Tax Rules, 2017 (CGST Rules).

The key observations of the HC are:

Foreign Assets disclosure scheme operationalized - CBDT prescribes valuation rules, forms and compliance framework

 This Tax Alert summarizes the recent Notification notifying “The Foreign Assets of Small Taxpayers - Disclosure Scheme Rules 2026” (Rules) issued by the Central Government and 50 Frequently Asked Questions (FAQs) issued by Central Board of Direct Taxes^[2] (CBDT), pertaining to “The Foreign Assets of Small Taxpayers – Disclosure Scheme 2026” (Scheme) which was introduced vide Finance Act (FA) 2026^[3].