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Weekly Analysis of Notifications & Circulars Week Ending  8 March 2026

by | Mar 10, 2026 | General

 

CA Jagdeep Garhwal                                            10 March 2026                                       CA/CS                                        Articles, Featured

Covering: Income Tax  |  GST  |  Customs & DGFT  |  SEBI  |  RBI  |  IBBI  |  MCA & Judiciary

Context Note: This digest covers key regulatory developments during 2–8 March 2026. The period falls in the final stretch of FY 2025–26, a time of heightened compliance activity as taxpayers, businesses, and regulated entities prepare for the year-end deadline of 31 March 2026. The Income Tax Act, 2025 (assented to on 21 August 2025) is now the governing direct tax statute, and CBDT has been progressively notifying implementing rules. GST, SEBI, and RBI developments this week continue the trend of regulatory modernisation and year-end compliance facilitation.

 

AT A GLANCE — KEY HIGHLIGHTS

Category Key Development
Income Tax CBDT notifies crypto assets & CBDCs under financial account reporting; year-end TDS correction deadline 31 Mar 2026.
GST Year-end push: LUT for exports & Composition Scheme opt-in for FY 2026-27 by 31 Mar 2026; GST Appellate Tribunal appeals deadline 30 Jun 2026.
Customs Revised tariff values for edible oils, gold & silver; anti-dumping review updates.
DGFT Import Management System for restricted IT hardware (laptops, tablets) in full operation for 2026; year-end SION compliance.
SEBI Voluntary debit freeze facility for mutual fund folios introduced; technical glitch framework revised for stock brokers.
RBI Draft Directions on Foreign Exchange Dealings of Authorised Persons — public comments close 10 March 2026; FEMA export/import rules effective Oct 2026.
IBBI / MCA NCLAT rulings on IBC thresholds; MCA year-end compliance guidance.

 

A. INCOME TAX

  1. CBDT Brings Crypto Assets & CBDCs Under Financial Account Reporting

The Central Board of Direct Taxes notified amendments to the Income-tax Rules, 2026, extending the scope of financial account reporting to cover crypto assets (virtual digital assets), Central Bank Digital Currencies (CBDCs), and certain electronic money products. This change aligns India’s reporting framework with the OECD’s Crypto-Asset Reporting Framework (CARF) and is part of the broader implementation of the Income Tax Act, 2025.

  • Crypto assets and CBDCs now fall within the definition of reportable financial accounts.
  • Reporting entities (exchanges, custodians, wallets) must comply with enhanced due diligence and reporting obligations.
  • The amendment signals India’s commitment to international tax transparency standards ahead of the new financial year.

 

  1. TDS Correction Statements — Critical Year-End Deadline

In view of Section 397(3)(f) of the Income Tax Act, 2025, correction statements for TDS/TCS filings for earlier financial years will be time-barred as of 31 March 2026. Deductors and collectors are urged to take note of the following:

  • FY 2018-19 (Quarter 4): Correction statements accepted only up to 31 March 2026.
  • FY 2019-20 to FY 2022-23 (Quarters 1–4): Same deadline applies.
  • FY 2023-24 (Quarters 1–3): Correction statements will not be accepted after 31 March 2026.

Deductors who have not filed correction statements for these periods should do so before the financial year closes, as the limitation is absolute and non-extendable.

 

  1. Draft Income Tax Rules, 2026 — Stakeholder Input

CBDT has invited stakeholder input on proposed Income-tax Rules and related Forms relating to the Income Tax Act, 2025. The draft rules are intended to operationalise the new Act, which received Presidential assent on 21 August 2025 and will govern direct taxation going forward. Practitioners and taxpayers have been urged to submit feedback on the proposed rule structure before the new financial year commences.

 

  1. Judicial Update — Reassessment & MAP Proceedings

CBDT has issued guidance on giving effect to outcomes reached under the Mutual Agreement Procedure (MAP) in cases where an appeal is pending before the Commissioner of Income Tax (Appeals). The guidance streamlines the procedure for withdrawing domestic appeals once MAP resolution is achieved, reducing litigation overlap and facilitating treaty-based dispute resolution.

 

B. GOODS & SERVICES TAX (GST)

  1. Year-End Compliance Deadlines — 31 March 2026

With the financial year drawing to a close, GSTN and CBIC have reminded taxpayers of two critical March 2026 deadlines:

  • Composition Scheme Opt-In: Regular taxpayers wishing to opt for the Composition Scheme for FY 2026-27 must do so by 31 March 2026.
  • Letter of Undertaking (LUT): Taxpayers who export goods or services without payment of GST must submit a fresh LUT for FY 2026-27 by 31 March 2026. Failure to file in time could disrupt export operations at the start of the new financial year.

Taxpayers are advised to review their compliance status and fulfil these obligations before month-end.

 

  1. GST Appellate Tribunal — Appeals Deadline Extended to 30 June 2026

The Ministry of Finance had previously notified 30 June 2026 as the final date for filing appeals before the GST Appellate Tribunal (GSTAT) for all cases where the disputed order was communicated to the appellant before 1 April 2026. This week, that deadline remains in effect and practitioners are cautioned:

  • The 30 June 2026 deadline is a one-time window for legacy disputes; it provides uniform relief for all pre-April 2026 orders.
  • For orders communicated on or after 1 April 2026, the standard three-month appeal period under the CGST Act applies.
  • Taxpayers with pending disputes before State AARs or against departmental orders should assess GSTAT appeal eligibility before the window lapses.

 

  1. GSTN Portal Update — ITC Utilisation Change Effective January 2026

The GST Portal implemented an important system-level change in Input Tax Credit (ITC) utilisation effective from the January 2026 tax period onwards. Under the revised logic, the portal enforces a stricter sequence of ITC set-off against output tax liability, reducing manual intervention. Taxpayers filing GSTR-3B for February and March 2026 should verify that the auto-populated ITC utilisation aligns with their records before submission.

 

  1. GST Amendments via Finance Bill, 2026

The Finance Bill, 2026 has proposed significant amendments to the CGST Act, 2017. Highlights include:

  • Post-sale discounts: Businesses will no longer need a pre-existing agreement to give post-sale discounts under GST. Section 15 read with Section 34 has been amended accordingly.
  • Intermediary services: The special place-of-supply rule for intermediary services under Section 13 of the IGST Act is being removed, addressing long-standing litigation.
  • Provisional refunds extended: Taxpayers claiming refunds due to an inverted duty structure will become eligible for provisional refunds under Section 54(6).
  • Export refunds: The minimum refund amount threshold for exports made with payment of tax (under Section 54(14)) is being removed.

These amendments are proposed and subject to enactment; practitioners should monitor the Finance Act for final language.

 

C. CUSTOMS & CENTRAL EXCISE

  1. Tariff Value Revision — Edible Oils, Gold, Silver & Areca Nut

CBIC revised the tariff values for key commodities for the fortnight ending mid-March 2026. These values serve as the base for calculating customs duty on notified goods irrespective of the transaction value.

  • Crude Palm Oil: Revised to approximately USD 1,075 per metric ton (CIF basis).
  • Gold: Revised tariff value is approximately USD 1,567 per 10 grams, reflecting elevated international gold prices.
  • Silver: Tariff value revised to approximately USD 2,950 per kilogram.
  • Areca Nut: Continues to be notified at USD 7,600+ per metric ton.

Importers of these commodities should use the updated tariff values when calculating customs duty liability for shipments arriving in this period.

 

  1. Anti-Dumping Updates

Several anti-dumping duty reviews are ongoing or nearing conclusion as the financial year ends. Notably:

  • Anti-dumping duty on Toluene Di-isocyanate (TDI) imports from the EU and Saudi Arabia, which was extended to 1 March 2026, has now lapsed pending further review notification. Importers of TDI should monitor for any new imposition notification.
  • Anti-dumping duty on Fluoroelastomers (FKM) from China extended to 26 February 2026 has similarly lapsed, and the review conclusion is pending.
  • Anti-dumping duty on Cold Rolled Non-Oriented Electrical Steel originating in China remains in force for five years from imposition date in December 2025.

D. DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT)

  1. Import Management System — IT Hardware (HSN 8471)

The Import Management System (IMS) for restricted IT hardware is now fully operational for the calendar year 2026. Under the system, imports of laptops, tablets, all-in-one PCs, ultra-small form factor computers, and servers classified under HSN 8471 continue to be treated as ‘Restricted.’

  • Importers must apply online through the DGFT portal for an import authorisation under the IMS before each shipment.
  • Authorisations granted under the IMS are valid until 31 December 2026.
  • Exemptions continue to be available for specified categories (defence, government procurement, R&D, etc.).

Companies that have not yet obtained their 2026 IMS authorisations should do so promptly to avoid customs clearance delays.

 

  1. Year-End Advance Authorisation Compliance

Exporters holding Advance Authorisations (AAs) with export obligations expiring during FY 2025-26 are reminded of the following:

  • The amendment to the AA scheme allows exporters to submit a Chartered Accountant’s certificate if the latest ITR is not yet finalised, provided ITR proof is submitted by 31 December of the application year.
  • Units must ensure compliance with export obligation percentages before 31 March 2026 to avoid interest and penalty under the Foreign Trade (Development and Regulation) Act.

 

E. SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

  1. Voluntary Debit Freeze Facility for Mutual Fund Folios

SEBI introduced a voluntary debit freeze facility that allows investors to lock their mutual fund folio against all debit transactions. This is a significant investor-protection measure intended to prevent unauthorised redemptions and fraudulent transactions.

  • Investors can activate the debit freeze on their folios through the registrar and transfer agents (RTAs) or AMCs.
  • Once frozen, no redemptions, switches, or SIP cancellations can be processed without explicit investor authorisation to unfreeze.
  • The facility does not affect dividend credits or SIP investments (inflows); only debit transactions are locked.

SEBI’s Securities Regulation indicates that RTAs, AMCs, and depositories must integrate this facility into their systems within specified timelines. Investors holding significant mutual fund portfolios are encouraged to evaluate whether activating this feature is appropriate for their security needs.

 

  1. Technical Glitch Framework Revised for Stock Brokers

SEBI revised the technical glitch reporting and compliance framework applicable to stock brokers. The key changes ease the compliance burden, particularly for smaller market participants:

  • Brokers with turnover below specified thresholds are largely exempted from the enhanced reporting requirements of the earlier framework.
  • Penalties for technical glitches have been rationalised to be proportional to the scale of disruption and broker size.
  • Technology infrastructure requirements have been recalibrated to reflect market realities for mid-sized and smaller brokers.

The revision reflects SEBI’s policy of graduated regulatory requirements and reducing compliance costs for smaller intermediaries.

 

  1. SEBI’s Pension Advisory Committee Reconstituted

SEBI reconstituted its Pension Advisory Committee with effect from January 5, 2026. The reconstituted panel includes a mix of government officials, industry leaders, and pension sector experts. The Committee advises SEBI on matters related to pension schemes, annuity products, and the interface between the securities market and pension sector, including NPS-related investments.

 

F. RESERVE BANK OF INDIA (RBI) & FEMA

  1. Draft Directions on Foreign Exchange Dealings — Comments Due 10 March 2026

On 17 February 2026, the Reserve Bank of India released Draft Directions on Foreign Exchange Dealings of Authorised Persons for public consultation. The comment period closes on 10 March 2026 — the same day as today’s report.

  • The draft is issued under FEMA, 1999 and the RBI Act, 1934, and aims to modernise and consolidate the regulatory framework governing Authorised Dealers (AD Category-I banks) and AD Category-III entities.
  • Stakeholders dealing in foreign exchange — including banks, money changers, and corporates — are strongly advised to submit comments before the deadline.
  • The draft proposes simplified compliance procedures and enhanced transparency in forex dealing operations.

 

  1. FEMA Export & Import Rules — Effective October 2026

RBI has updated rules under FEMA (Export & Import of Goods & Services), effective from 1 October 2026, to simplify compliance and encourage exports. Key features of the revised framework:

  • Export Declaration Form (EDF) remains mandatory.
  • The time limit to realise export proceeds: 15 months from date of shipment for goods; from invoice date for services.
  • Export value reduction: Allowed up to ₹10 lakh per invoice with appropriate bank declaration, without requiring prior RBI approval.
  • Gold and silver imports: No advance remittances permitted.
  • Merchanting trade transactions: The gap between outward and inward remittance must not exceed six months (enhanced from four months).
  • All reporting to be done on EDPMS (for exports) and IDPMS (for imports) platforms, ensuring full digital traceability.

These changes will be effective from October 2026 and businesses involved in international trade should begin reviewing their systems and documentation processes in advance.

 

  1. NBFC Concentration Risk Management — Amendment Directions

RBI issued Amendment Directions for NBFC Concentration Risk Management, updating capital adequacy norms for All India Financial Institutions (AIFIs) by revising risk weights on non-resident corporate claims. The amendment introduces differentiated treatment:

  • Claims on non-resident corporates with international credit ratings receive treatment aligned with those ratings.
  • Claims within the IFSC framework receive treatment based on IFSC-specific credit ratings.

NBFCs and AIFIs should review their concentration risk calculations to ensure compliance with the revised norms.

 

G. IBBI, MCA & JUDICIAL DEVELOPMENTS

  1. IBBI — NCLAT Rulings on IBC Thresholds & Moratorium

NCLAT delivered several important rulings this week relating to the Insolvency and Bankruptcy Code, 2016:

  • CIRP Termination When CoC Claims Are Covered: NCLAT upheld that CIRP proceedings may be terminated when the funds of the corporate debtor are sufficient to cover all claims of the Committee of Creditors, particularly in smaller insolvency cases.
  • IBC Section 4 Threshold: The adjudicating authority reiterated that the minimum default threshold of ₹1 crore under Section 4 of IBC must be satisfied for an application to be admitted. Partial or disputed claims aggregated below the threshold are not admissible.
  • Funds Use by Suspended Management: NCLAT reiterated the prohibition on suspended management using corporate debtor funds post-commencement of moratorium.

 

  1. MCA — Year-End Compliance for Companies

The Ministry of Corporate Affairs has issued year-end compliance reminders for companies under the Companies Act, 2013. Upcoming deadlines of relevance include:

  • Annual filing (AOC-4 and MGT-7) for companies with March year-end: Due in September–October 2026 following this financial year-close.
  • Board meetings: Companies must ensure the required number of board meetings are held before 31 March 2026 to comply with Section 173.
  • CSR spending: Companies with CSR obligations for FY 2025-26 must ensure spending or transfer to unspent CSR accounts by 31 March 2026 to avoid penalty.

 

  1. Supreme Court & High Court Highlights

Key judicial rulings from the week with tax and regulatory significance:

  • GST: High Courts continued to receive petitions on Input Tax Credit denial under Rule 86A (blocking of ITC), with several benches emphasising procedural fairness requirements before ITC can be blocked.
  • Income Tax (New Act, 2025): Early-stage interpretation challenges to certain provisions of the new Act are being filed, though no binding decisions have been pronounced yet.
  • Customs: Importers are pursuing challenges to valuation additions, with courts reaffirming the principle that customs valuation must follow the transaction value method absent specific grounds to reject it.

 

H. COMPLIANCE CALENDAR — KEY MARCH 2026 DATES

 

Due Date Applicable To Compliance Requirement
10 Mar 2026 FX Dealers & Banks Last day to submit comments on RBI Draft Directions on Foreign Exchange Dealings of Authorised Persons.
15 Mar 2026 Companies Advance tax — 4th instalment due for FY 2025-26 (100% of advance tax liability).
20 Mar 2026 GST Taxpayers GSTR-3B for February 2026 due for monthly filers.
25 Mar 2026 GST Taxpayers GSTR-1 / IFF for February 2026 (monthly filers); GSTR-3B for QRMP scheme taxpayers.
31 Mar 2026 All Taxpayers CRITICAL year-end: TDS correction statements, Composition Scheme opt-in, LUT filing, CSR spending, board meetings, and GSTR-9/9C late fee waiver window all close.
30 Jun 2026 GST Taxpayers Last date to file appeals before GST Appellate Tribunal for orders communicated before 1 April 2026.