|
|
|
|
|
Dear Reader,
Greetings for the day!!!
We are pleased to share the recent Tax notification and circulars.
|
|
Direct Tax
|
|
|
|
|
CBDT issues guidelines for compulsory selection of returns for complete scrutiny during FY
2026-27, covering selection parameters, procedure & notice timelines.
|
|
|
|
|
|
|
UDIN Portal revised categories. ‘Certificates’ renamed ‘Certificates and Other Reports’,
‘GST & Tax Audit’ renamed ‘Tax Audit’.
|
|
|
|
|
|
|
Online filing and Excel utility of ITR-3 for A.Y 2026-27 now enabled on Income Tax e-filing
portal.
|
|
|
|
|
|
|
Excel Utilities for filing Updated return for ITR-1 to 7 for AY 2022-23 as per Finance Act,
2026 available on e-filing portal.
|
|
|
|
|
| Goods And Services Tax |
|
|
|
|
GSTN Extends Implementation Timeline for New E-Way Bill Functionalities to 1 August
2026
GSTN has extended the implementation timeline for two key E-Way Bill
functionalities—mandatory capture of "Ship To GSTIN" in Bill-To/Ship-To transactions and the
Voluntary Closure of E-Way Bill facility. These changes were originally scheduled to be
implemented from 15 June 2026. However, based on representations received from trade and
industry regarding the need for additional time for system upgrades, testing, API and ERP
readiness, and master data updates, GSTN has deferred the rollout. Accordingly, both
functionalities will now come into effect from 1 August 2026. Taxpayers, GST Suvidha
Providers (GSPs), ERP vendors, and other stakeholders are advised to complete the necessary
system changes and operational preparations before the revised implementation date to ensure
a smooth transition.
|
|
|
|
|
|
|
GSTAT Committee Recommends Procedural Reforms to Streamline Appellate
Process
The GSTAT Committee, in its meetings held on 29 May and 1 June 2026, reviewed
representations received from trade and bar associations and recommended several amendments
to the GSTAT (Procedure) Rules, 2025. The proposed changes aim to simplify appeal filing
procedures, promote digital documentation and verification, relax certain compliance
requirements, improve defect rectification timelines, and enhance case management through
measures such as weekly cause lists. The Committee also recommended waiving fees for
applications seeking rectification of errors under Section 112(10) of the CGST Act. These
recommendations are intended to make the GST appellate process more efficient, transparent,
and taxpayer - friendly.
|
|
|
|
|
|
|
Hon’ble Madras High Court: ITC cannot be denied merely due to absence of lorry
receipts or e-way bills
In M/s. Akal Trade Links v. Assistant Commissioner (ST) (Judgment dated 05 June 2026), the
Hon’ble Madras High Court held that Input Tax Credit (ITC) cannot be denied solely because
the recipient failed to produce lorry receipts, weighment slips or e-way bills, where the
supplier was a registered person at the time of supply and had duly discharged the
applicable GST liability.
The Court observed that the supplier's registration was valid during the relevant period,
tax invoices contained vehicle details, and GST returns reflecting the transactions had been
filed with corresponding tax paid. In such circumstances, the assessing authority ought to
have examined the overall genuineness of the transaction instead of rejecting ITC on the
basis of missing transport documents alone.
Accordingly, the Court set aside the assessment order and remanded the matter for fresh
consideration after permitting the taxpayer to submit additional evidence.
The judgment reiterates that denial of ITC cannot be based on the absence of a particular
document alone. Tax authorities must undertake a holistic examination of invoices, supplier
compliance, tax payment, banking records and other supporting evidence before concluding
that the underlying transaction is not genuine.
|
|
|
|
|
|
|
GSTN Issues Advisory on Mandatory Ship-to GSTIN & Voluntary e-Way Bill
Closure
The Goods and Services Tax Network (GSTN) has issued an advisory introducing significant
changes to the e-Invoice API, e-Way Bill by IRN API, and e-Way Bill Closure API, effective 1
August 2026.
Under the revised framework, Ship-to GSTIN will become conditionally mandatory wherever
e-Way Bills are generated for Bill-to/Ship-to transactions. Where the consignee is
unregistered or a GSTIN is not applicable, taxpayers must report "URP" in the Ship-to GSTIN
field. The system will also validate the GSTIN, ensure it differs from the Bill-to GSTIN,
and verify the corresponding State and PIN codes.
The advisory also introduces a Voluntary e-Way Bill Closure facility, enabling suppliers,
recipients, transporters and authorised drivers to close an e-Way Bill after successful
delivery of goods. API users can perform closure by submitting the EWB number, closure date
and remarks.
GSTN has released these changes in the Sandbox environment and advised taxpayers, ERP
vendors, GSPs, ASPs and other system integrators to update their systems and complete
testing before the production rollout on 1 August 2026.
|
|
|
|
|
