GST Updates
Supreme Court Clarifies Requirements for Invoking Section 74 of the CGST Act
The SC has held that the extended period under Section 74 of the CGST Act cannot be invoked merely based on the mechanical use of expressions such as ‘fraud’, ‘wilful misstatement’ or ‘concealment of facts’, without disclosing the specific factual basis leading to such allegations. It was emphasised that such a deficiency in the SCN cannot be subsequently cured by relying on allegations or explanations contained in the counter affidavit, as the prerequisites for invoking Section 74 must emanate from the notice itself. Accordingly, the SCN was set aside.(M/s. G.R. Infra Projects Limited Ratlam (CA No. 11277/2026 dated 19 August 2026)]
57th GST Council Meeting Rescheduled
57th Council Meeting Rescheduled: Moved from September 12 to October 7, 2026
GSTN Introduces Multi-State Registration Facility on the GST Portal
The Goods and Services Tax Network (GSTN) introduced a new auto-population effective 1st Sept 2026 and Multi-State Registration facility on the GST Common Portal to simplify secondary and cross-state registrations. Regulatory Updates
GSTN Enables Auto-Population in FORM GST REG-01 for Additional GST Registrations
The Goods and Services Tax Network (GSTN) on September 10, 2026 has introduced a new auto-population facility in FORM GST REG-01 to simplify the process of obtaining an additional GST registration for businesses already having an active GSTIN under the same Permanent Account Number (PAN). The facility has been made live on the GST Portal from 1 September 2026.
GST Portal Enables Filing of Appeals Involving Zero or NIL Demand
GST portal has been enabled for the filing of appeals in cases inolving zero or NIL demand amount.
GSTN Issues Advisory on emSigner Version 3.3 for Compatibility with New Digital Signature Tokens
Advisory on use of version 3.3 of emSigner- A new version of 3.3 of emSigner is being made available for download for the purpose of providing compatibility with tokens (USB Dongles) that are issued on or after 21st Sept 2026.
Income Tax Updates
1. CBDT Extends Timelines for Filing Audit Reports and ITRs for AY 2026–27
Taxpayers whose accounts are required to be audited under the Income-tax law must furnish their audit report before filing their Return of Income (ITR) by the prescribed due date. The Central Board of Direct Taxes (CBDT) has extended the due date for furnishing the furnishing the audit report to 21 October 2026 and the filing of Income tax return to 21 November 2026 from the existing 30 September 2026 and 31st October 2026.
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2. CBDT Prescribes Procedure for Registration and Submission of Form No. 98
Form No. 98 (which replaces the erstwhile Form No. 61) is a half-yearly statement that reporting persons/entities must file with the Income Tax Department, giving particulars of declarations received in Form No. 97 (the erstwhile Form No. 60) from persons who do not have a PAN but enter into specified transactions. The CBDT, through Notification No. 3 of 2026, has prescribed the procedure for registration of reporting persons/entities and electronic submission of Form No. 98 under Rule 160 of the Income-tax Rules, 2026. Form No. 98 is required to be furnished by 31 October for declarations received up to 30 September and by 30 April for declarations received up to 31 March.
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3. CBDT Issues SFT-2517 Guidelines for Depository Transactions
The Statement of Financial Transactions (SFT) is a statement through which specified reporting entities report high-value and specified financial transactions of their customers to the Income Tax Department, enabling the Department to cross-verify the income and transactions reported by taxpayers. Through Notification No. 1 of 2026, guidelines have been prescribed for the preparation and submission of Statement of Financial Transactions (SFT-2517) by Depositories in relation to specified transactions involving listed securities. The SFT is required to be filed half-yearly, by 31 October and 30 April, along with prescribed reporting, validation, reconciliation, correction and information-security requirements.
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4. CBDT Issues SFT-2518 Guidelines for Mutual Fund Transactions
SFT-2518 is the Statement of Financial Transactions through which Registrar and Share Transfer Agents (RTAs) report specified Mutual Fund transactions of investors to the Income Tax Department. Through Notification No. 2 of 2026, guidelines have been prescribed for the preparation and submission of SFT-2518 by RTAs. The statement is required to be submitted half-yearly, by 31 October and 30 April, with prescribed requirements covering data submission, taxpayer reconciliation, correction of inaccuracies and information security.
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Draft bill amending the protocol to India – France DTAA was submitted to the French Senate on September 16, 2026
The amendment to the protocol incorporates the provisions of the BEPS Multilateral Instrument (MLI), which have become effective consequent to the signing and ratification of MLI by India and France. Few key amendments include (i) expansion of scope of Permanent Establishment to include service PE clause with 60 days for related enterprises and a “closely related enterprises”, (ii) split rates dividends instead of single rate of 10%; (iii) new article on Principal purpose test; and (iv) amendment to Most Favoured Nation clause.
OECD releases full version of Model Tax Convention on Income and capital, 2025
The OECD Model Tax Convention on Income and on Capital is the key reference used by OECD and non-OECD countries to negotiate, apply and interpret bilateral tax treaties (DTAAs). On 30 September 2026, the OECD released the 11th edition of its full version, containing the Articles, Commentaries and non-OECD economies’ positions as they read on 18 November 2025. It incorporates the 2025 Update, which, among others, (i) clarifies when cross-border remote work may create a Permanent Establishment (PE), including a 50% working-time threshold over a 12-month period; (ii) the commentary on Article 5 introduces an alternative, optional provision dealing with activities connected with the exploration and exploitation of extractible natural resources, together with related Commentary; (iii) clarifies the application of the arm’s length principle to financial transactions; and (iv) amends the Mutual Agreement Procedure (MAP) article addressing the role of competent authorities in determining whether a matter falls within the scope of a tax treaty for purposes of dispute-resolution mechanisms under the General Agreement on Trade in Services (GATS)
CBDT amends Rules 215, 218 & 219 of IT Rules 2026, regarding TDS on payments to non-residents
Under the Income-tax Act, 2025, a buyer of immovable property is required to deduct tax at source (TDS) on the consideration paid to the seller. Form No. 141 is the challan-cum-statement for paying and reporting TDS deducted under section 393(1). Through Notification No. 121/2026 dated 22 September 2026, the CBDT has notified the Income-tax (Fifth Amendment) Rules, 2026, effective from 1 October 2026, extending Form No. 141 to resident individuals and HUFs deducting tax under section 393(2) on consideration for the transfer of immovable property by a non-resident. Rules 215, 218 and 219 and Forms No. 132 and 141 have been amended accordingly, and a new Schedule E has been inserted in Form No. 141 capturing details of the property, buyers and non-resident sellers (including overseas address, tax residency certificate number and tax identification number), stamp duty value, sale consideration, instalments, type of capital gains, TDS rate and any lower/nil deduction certificate under section 395. The non-resident’s contact details and overseas address are mandatory even where the seller has a PAN; where no PAN is available, the tax residency certificate and tax identification number must be furnished to avoid deduction at a higher rate. TDS reported must include surcharge and cess, and each deductor must file a separate form.
CBDT has extended the application date for registration of valuers & authorized IT practitioners to March 31, 2027
CBDT vide Notification No. 120/2026 dated Sep 17, 2026, has substituted the date 30th September, 2026”, in Rule 246(4) and 256(4) with “31st March, 2027”, thereby extending the application date for registration of existing/new valuers and authorized Income Tax practitioner to March 31, 2027.
