Direct Tax
FAST-DS Rules, 2026 notified: Procedural framework for foreign asset disclosure
Notification No. 114/2026 effective 16 August 2026 Dated – 14/08/2026
Pursuant to the introduction of the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS), the CBDT has notified the Foreign Assets of Small Taxpayers Disclosure Scheme Rules, 2026 vide Notification No. 114/2026. While the Finance Act, 2026 laid down the substantive provisions of the Scheme, the notification provides the much-needed procedural framework by prescribing the forms, filing mechanism, valuation rules, and payment process for taxpayers seeking to avail the Scheme.
A key aspect of the notification is its detailed valuation rules for determining the fair market value of foreign assets as on 31 March 2026. The Rules provide specific methodologies for valuing foreign bank accounts, shares and securities, immovable properties, partnership interests, jewelry, artworks, and other foreign assets to ensure consistent and uniform disclosures. The notification also prescribes the electronic filing of declarations through the specified forms. It sets out how tax, additional tax, penalty, or fee, as applicable under the Scheme, is to be computed and paid.
The Rules therefore transform the Scheme from a legislative proposal into an operational compliance mechanism. By clarifying valuation, documentation, and procedural requirements, Notification No. 114/2026 is expected to facilitate smooth implementation of the Scheme and enable eligible taxpayers to regularize foreign asset reporting through a structured, transparent process before the prescribed deadline.
Indirect Tax
Customs
Duty-free raw sugar imports under Tariff Rate Quota (TRQ) until 31 October 2026
Notification No. 30/2026-Customs Dated 21 August 2026
The Government has granted a complete customs duty exemption on the import of 1 million metric tonnes (MT) of raw sugar (tariff heading 1701) under the Tariff Rate Quota (TRQ) Scheme until 31 October 2026.
The exemption is subject to the following procedural requirements:
- The importer must obtain a TRQ allocation from DGFT, in accordance with the applicable procedures under the Handbook of Procedures, 2023.
- The authorization should contain key particulars such as importer details, IEC, notification reference, tariff heading, permitted quantity, and validity.
- The authorization must be electronically transmitted to the Indian Customs EDI System (ICES).
- Duty-free clearance will be available only against electronic debit of the allotted quota in ICES.
Frequent tariff value revisions for edible oils, brass scrap, gold, silver and areca nuts
Notification No. 69/2026-Customs (N.T) Dated 10 August 2026,
Notification No. 70/2026-Customs (N.T) Dated 14 August 2026,
Notification No. 71/2026-Customs (N.T) Dated 25 August 2026,
Notification No. 72/2026-Customs (N.T) Dated 31 August 2026.
The Central Board of Indirect Taxes and Customs (CBIC) issued a series of notifications revising tariff values for edible oils, brass scrap, gold, silver and areca nuts within a span of three weeks. The frequency of these revisions highlights the administration's continued reliance on tariff values as a dynamic tool for customs valuation and revenue protection.
The fortnightly revisions indicate CBIC's proactive alignment of tariff values with international commodity prices. The most volatile adjustments during August 2026 were seen in gold (USD 1,395 → USD 1,500 → USD 1,468), silver (USD 2,076 → USD 2,267) and brass scrap (USD 7,639 → USD 8,162). Edible oils witnessed a gradual upward revision, suggesting firming global prices, while areca nut stabilized at USD 11,574/MT from 15 August onwards.
Anti-dumping duty on phthalic anhydride from China PR and Korea RP extended for five years
Notification No. 20/2026-Customs (ADD), Dated 05 August 2026
Based on the DGTR's findings, the Government concluded that dumping of the subject goods has continued and that ceasing the existing anti-dumping duty is likely to lead to the continuation or recurrence of dumping and consequent injury to the domestic industry. Accordingly, the anti-dumping duty has been continued for a further period of five years.
CBIC standardizes postal import clearance through FPO Import Application
Circular No. 35/2026-Customs, Dated 06 August 2026
CBIC has introduced a technology-driven SOP for postal imports through the FPO Import Application, promoting uniformity, digital processing, and risk-based assessments across Foreign Post Offices.
Importers should ensure that accurate declarations are filed and that all supporting documents are readily available. Importers should also respond promptly to Document (D-Call) letters and other customs queries to avoid clearance delays or assessments based on incomplete information. Proper documentation and timely compliance will be essential for smooth processing under the revised framework.
CBIC extends Customs relief as Strait of Hormuz disruptions continue
Circular No. 36/2026-Customs, Dated 20 August 2026
A temporary facilitative framework is provided for the movement of international cargo through Indian ports and airports in view of the continuing operational challenges arising from the West Asia crisis. It extends the relief measures and procedural relaxations introduced under earlier circulars till 31 October 2026.
The extension of these facilitative measures to all seaports and airports, along with the specific provisions relating to bulk cargo, offers greater operational flexibility to businesses affected by disruptions in international shipping routes. However, because permissions for handling bulk cargo are granted on a case-by-case basis, importers and exporters must proactively coordinate with the jurisdictional Customs authorities and ensure compliance with all applicable requirements for storage, documentation, quantity verification, and custodial arrangements.
CBIC prescribes IGST payment mechanism for raw sugar imports converted from Advance Authorization to TRQ
Circular No. 37/2026-Customs, Dated 27 August 2026
The Government's recent decision to permit duty-free import of 1 million MT of raw sugar under the Tariff Rate Quota (TRQ) scheme created an operational challenge for importers who had already imported raw sugar under the Advance Authorization (AA) Scheme and subsequently opted for the one-time conversion to the TRQ framework.
While DGFT allowed conversion of import authorizations, no established mechanism existed to recover IGST that had originally been exempted at the import stage. Under the prescribed mechanism, IGST must be paid through the Customs Electronic Data Interchange (EDI) system at the Port of Import (POI), rather than through a separate voluntary payment process. Availability of Input Tax Credit (ITC) for the IGST paid is subject to compliance with the applicable provisions of GST law.
Foreign Trade Policy
DGFT opens inventory-based cross-border e-commerce export framework under FTP 2023
Notification No. 27/2026-27 Dated 5 August 2026 and Public Notice No. 25/2026-27 Dated 5 August 2026
DGFT has introduced an Inventory-based Cross-border E-Commerce Export Framework under FTP 2023, formally recognizing inventory-led e-commerce exports and aligning Indian exporters with global digital trade practices.
The framework allows designated entities to maintain export inventory for overseas sales and introduces key concepts such as Exporter-on-Record (EOR), Seller-on-Record (SOR), Export Inventory, Domestic Inventory, and Export Rebates and Refunds (ERR).
Key conditions include: Only Indian-origin goods can be exported; export and domestic inventories must remain separate; confirmed export orders must be backed by inventory procurement; EORs must maintain digital records and inventory traceability; and payments, incentives, and rebates must follow the prescribed framework.
DGFT grants full recognition to INR export realizations under FTP 2023
Notification No. 30/2026-27 Dated 20 August 2026
DGFT has amended FTP 2023 to grant export proceeds realized in Indian Rupees (INR) the same recognition as proceeds received in freely convertible foreign currency for export incentives, benefits, and fulfillment of export obligations.
Export contracts, invoices, and realizations (except for ACU member countries) can now be denominated in either foreign currency or INR. Separate rules continue for ACU countries, while Nepal and Bhutan retain existing RBI-approved INR settlement arrangements.
Export proceeds realized in INR through permitted banking channels will now be eligible for:
- FTP benefits and incentives, including RoDTEP (where applicable).
- Fulfillment of export obligations under FTP schemes.
The amendment is expected to provide exporters with greater flexibility, lower currency management costs, and increased confidence in adopting INR-based trade settlements.
DGFT relaxes One Star Export House eligibility criteria
Notification No. 33/2026-27 Dated 21 August 2026
For the grant of One Star Export House status (other than the Gems & Jewellery sector), export performance in any two out of the three preceding financial years will now be sufficient, subject to the other conditions prescribed. The amendment has come into force with immediate effect.
DGFT integrates ICEGATE duty payment data with EODC processing for AA and EPCG schemes
Trade Notice No. 15/2026-27 Dated 5 August 2026
In a significant trade-facilitation measure, the DGFT has enabled the integration of license-wise voluntary duty payment data received from Customs/ICEGATE into the DGFT online system for processing Export Obligation Discharge Certificate (EODC) applications.
DGFT has clarified that only voluntary duty payment details reflected on the DGFT portal, based on data received from Customs/ICEGATE, will be recognized for processing and closure of EODC applications under AA and EPCG schemes.
DGFT automates export obligation extension for PRC/EPCG-approved cases
Trade Notice No. 21/2026-27 Dated 21 August 2026
DGFT has introduced an automated facility for granting EO extensions in cases approved by the PRC/EPCG Committee, eliminating the need for exporters to file a separate extension application after committee approval.