Pushkar Mer

The Reserve Bank of India issued A.P. (DIR Series) Circular No. 25 and A.P. (DIR Series) Circular No. 26 on October 10, 2026, to tighten controls and manage risk in the foreign exchange mark.

These are very important regulatory measures announced by the Reserve Bank of India  (RBI) on October 10, 2026, concerning Foreign Exchange (FX) derivative transactions involving Indian Rupee, effective immediately, aimed at strengthening market discipline and ensuring orderly functioning of the foreign exchange market.

The key changes include restrictions on rebooking cancelled FX derivative contracts, a reduction in the threshold for undertaking certain derivative transactions without establishing the underlying exposure, from $100million to $5 million and the introduction of a Foreign Exchange Risk Reserve (FERR) for specified transactions.

Dealers must secure signed declarations confirming exposures are not redundantly hedged elsewhere.

In 57^th GST Council Meeting- Major relief for taxpayers as the Council announces removal of GST officers’ arrest power. Prosecution threshold increased from INR 1 Crore to 5 Crore removing prosecution exposure. Courts will have discretion to impose imprisonment, fine or both depending on the case. Consignments will generally be checked at origin and destination rather than repeatedly across states. Prior authorization by an officer not below Joint Commissioner rank required for intelligence-based vehicle stoppage.

Recommendations of 57^th GST Council meeting is a great initiate towards ease of doing business in India.

In the case of Flora Kingdom Farm Resort Vs. Commissioner of Commercial Taxes, the Goods and Services Tax Appellate Tribunal (GSTAT) Bengaluru Bench  ruled on the eligibility of Input Tax Credit (ITC) for resort and hotel construction as building cannot be treated as plant and machinery after the retrospective amendment effective July 01, 2017. A resort used for the taxpayer’s own business, shall be reckoned to be built on own account even where it hosts weddings and events.

The Directorate General of Foreign Trade Notification extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for three months until December 31, 2026

The Reserve Bank of India has introduced the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026. The revised framework seeks to promote ease of doing business, facilitate faster transaction processing and provide Authorised Dealer (AD) Banks greater flexibility in handling trade transactions while maintaining appropriate regulatory oversight.

Effective 1 October 2026, the existing RBI Master Directions on Export of Goods and Services , Import of Goods and Services will stand superseded and be replaced by the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (FEMA 23(R)/2026-RB dated January 13, 2026).

Hon’ble Supreme Court of India dismissed a writ petition filed by Vikas Jindal challenging the validity of arrest and the constitutional validity of Sections 69 and 70 of the Central Goods and Services Tax (CGST) Act, 2017.

Hon’ble Supreme Court reiterated that a penalty and prosecution mechanism to check evasion is a permissible exercise of legislative power. It therefore rejected the petition challenging the provisions allowing arrest and summons under GST law.

Trade Notice No. 25/2026/27 issued by DGFT on 7^th September 2026. DGFT has introduced an Open API facility for issuance of Certificates of Origin (CoO) through the Trade Connect platform and the same is now made available for use by eligible exporters as per prescribed process and technical requirements.

The objective of the Open API facility is to enable exporters to integrate their Enterprise Resource Planning (ERP), accounting or other software systems with the DGFT’s Certificate of Origin system for electronic submission and exchange of CoO-related information, thereby reducing manual data entry and facilitating a more efficient application process.

The complete process for registration, API access, authentication, technical integration and use of the Open API facility is available on the Trade Connect portal, at
https://www.trade.gov.in/pages/certificate-of-origin in “API Management for Exporters” section.

In case of ESNP Property Builder and Developers Pvt Ltd Vs State Tax Officer Hon’ble Madra High Court set aside assessment orders regarding the denial of Input Tax Credit (ITC) on construction undertaken for commercial leasing. The Assessing Authority rejected the claim, holding that construction of property on own account is blocked irrespective of later commercial use. The Court held this is contrary to the Supreme Court ruling in Safari Retreats, which held that construction is not on a person’s own account where the property is intended to be sold, leased or licensed.

The Employees’ Provident Fund Organization (EPFO) officially confirms that EPF accounts continue to earn interest until members reach 58 years of age, even if they leave their employment early or stop making fresh contributions.

Through updates and official social media clarifications, the EPFO has dispelled the common myth that provident fund accounts automatically stop earning interest after three years of inactivity.