Direct Tax
India-Japan DTAA – MoU for Assistance in Collection of Taxes notified
The notification is issued to inform that the Memorandum of Understanding for Assistance in Collection of taxes under Article 26A of the India-Japan Double Taxation Avoidance Convention (DTAA) was signed at Tokyo on the 30 June, 2025, and at New Delhi on the 8th July, 2025. The MOU sets out the practical procedures for implementing Article 26A of the DTAA, which deals with one country helping the other recover tax dues. The MOU shall have effect in India with respect to any request for the collection of taxes made on or after 8 July, 2025.
New forms for Changes or Corrections in PAN Data
Prior to 1 April 2026, PAN correction requests were made through the common form, i.e., Form 49A/49AA ‘Request for New PAN Card or/and/or Changes or Correction in PAN Data’. Now, the Director General of Income Tax (Systems), specified the following forms for changes or corrections in PAN Data:
- PAN CR-01: Request for Changes or Correction in PAN Data [For an Individual]
- PAN CR-02: Request for Changes or Correction in PAN Data [For Non-Individual]
The above-mentioned forms can be submitted physically at the PAN Center’s of M/S UTIITSL/ M/S Protean eGov or online through their websites.
Indirect Tax
CBIC announces BCD exemption to critical petrochemical inputs
Notification No. 12/2026-27-Customs dated 1 April 2026
CBIC has introduced a temporary measure to ensure the continued availability of critical petrochemical inputs by announcing exemption from Basic Customs Duty (BCD) till 30 June 2026.
The exemption applies to goods specified in the annexure to the notification, including various chemicals, petrochemicals, and polymer products such as phenol, acetic acid, methanol, and, polystyrene.
This measure is expected to benefit industries such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing sectors.
Notification No. 14/2026-27-Customs dated 30 April 2026 (Tariff)
- Pursuant to amendments to the Customs Tariff Act, 1975, the Government has issued an omnibus notification aligning 23 legacy notifications with the revised 2026 tariff structure.
- The update primarily involves the substitution of obsolete HSN codes with revised codes across sectors such as electronics, agriculture, industrial goods, leather, and infrastructure.
- Importers and exporters are required to adopt the updated 8-digit HSN codes for all filings with effect from 1 May 2026.
Introduction of faceless assessment for SEZ units
Circular No. 18/2026-Customs dated 1 April 2026
CBIC has clarified that Bills of Entry filed by SEZ units for clearance into the Domestic Tariff Area (DTA) will be assessed under the faceless assessment system with allocation made by the Risk Management System (RMS).
The existing procedure for filing Bills of Entry and other compliance requirements remains unchanged.
Jurisdictional officers will continue to handle post-assessment functions.
CBIC updates RoDTEP and RoSCTL schemes
Circular No. 20/2026-27-Customs dated 10 April 2026
Remissions will be granted on the full FOB value without deduction of agency commission or bank charges, provided it doesn’t exceed 12.5% of the FOB price.
Compensation received from the ECGC for short-realized export proceeds may be treated as ‘realized sale proceeds’ and hence export rebates may not be recovered. This is subject to the Reserve Bank of India permitting write-off of the realization requirements and certification from the concerned Foreign Mission of India.
CBIC mandates a faster timeline for processing export incentive claims
Instruction No. 05/2026-27 dated 23 April 2026
CBIC has mandated expedited timelines for processing export incentive claims to address delays in the generation of RoSCTL scrolls. A strict 3-day timeline has been prescribed for the generation of RoDTEP and RoSCTL scrolls.
This aligns with the applicable timelines for duty drawback disbursal.
Amendment to FTP 2023 to revise provisions related to the issuance of Certificates of Origin (CoO)
Notification No. 05/2026-27 read with Public notice 01/2026-27 dated 7 April 2026
CoOs for Indian exports can now be issued only by agencies authorized by the Directorate General of Foreign Trade (DGFT).
Authorized agencies are required to process applications and issue CoOs exclusively through the designated electronic platform.
Exporters must ensure identical invoice numbers in CoO and corresponding Shipping Bills for system-based validation.
Manual issuance outside the platform is prohibited and may result in withdrawal of authorization.
Alignment of the RoDTEP tariff lines
Notification No. 15/2026-27 dated 30 April 2026
DGFT has realigned RoDTEP with 194 tariff lines in accordance with the revised Customs Tariff. Changes include the addition of 142 new 8-digit tariff lines, deletion of 50 tariff lines, and modification of 2 tariff descriptions.
Revised schedules will be implemented in the Customs Automated System with effect from 1 May 2026.
The alignment aims to reduce classification disputes and ensure consistency to facilitate smoother processing of eligible export claims.
Govt. expands the scope of financial support for specific iron and steel exporters under the Export Promotion Mission
Trade Notice No. 01/2026-27 dated 20 April 2026
DGFT has expanded financial support under the Export Promotion Mission for iron and steel exporters. 167 tariff lines under Chapter 72 have been made eligible for interest subvention on export credit.
The benefit is restricted to Micro and Small Enterprises (MSEs); Medium Enterprises are excluded and will apply prospectively to eligible credit disbursed on or after 20 April 2026.
Govt. introduces an online module to address difficulties exporters face with manually issued post export EPCG scripts
Trade Notice No. 02/2026-27 dated 21 April 2026
An online module has been introduced to address issues relating to manually issued post-export EPCG scrips.
The module enables electronic issuance and seamless integration with ICEGATE.
Key scenarios covered
- Open authorizations: Online closure and automatic issuance of e-scrips
- Pending/expired scripts: Revalidation and retransmission through service requests
- Manual/missing scripts: Request for an electronic script based on supporting documentation
Govt. announces the extension of the special drive for the fast-track clearance of pending export obligation discharge certificates (EODC)
Trade Notice No. 34/2026-27 dated 21 April 2026
- The drive targets pending cases under the Advance Authorization (AA) and Export Promotion Capital Goods (EPCG) schemes.
- Regional Authorities (RAs) are instructed to prioritize long-pending applications, and deficient applications, or cases delayed by missing documentation.
- This initiative has been extended from to 31 May 2026.
- Obtaining an EODC would enable redemption of bonds and release of Bank Guarantees.