Direct Tax
CBDT eases TDS compliance for property purchases from non-residents
Notification No. 121/2026, dated 22 September 2026
The Income Tax (Fifth Amendment) Rules, 2026, notified vide Notification No. 121/2026, simplify the TDS compliance framework for resident individuals and HUFs purchasing immovable property from non-residents. With effect from 1 October 2026, such buyers can deposit and report TDS using their PAN and are no longer required to obtain a TAN for the transaction.
The notification amends Rules 215, 218 and 219 (corresponding broadly to the erstwhile Rules 30, 31A and 31 of the Income Tax Rules, 1962 relating to payment of TDS, filing of TDS statements and issuance of TDS certificates, respectively) and introduces a revised reporting mechanism through Form 141 (corresponding to the erstwhile Form 27Q read with Rule 31A of the Income Tax Rules, 1962), including a new Schedule E for capturing details of the property transaction, parties involved and TDS deducted. The revised framework also accommodates transactions involving multiple buyers, sellers and instalment-based payments.
While the compliance process has been simplified, the obligation to deduct and deposit TDS at the applicable rates remains unchanged. The amendment is expected to reduce the compliance burden and facilitate smoother execution of property transactions involving non-resident sellers.
Indirect Tax
Customs updates
CBIC operationalizes Sea Cargo Manifest and Transshipment Regulations, 2018 in a phased manner from 1 September 2026
Circular No. 38/2026-Customs dated 1 September 2026
CBIC has operationalized the Sea Cargo Manifest and Transshipment Regulations 2018 (SCMTR) across ports in a phased manner w.e.f. 1 September 2026. The new Regulations, which replace the erstwhile Import Manifest (Vessels) Regulations, 1971 and Export Manifest (Vessels) Regulations, 1976, require stakeholders to file prescribed electronic messages (arrival and departure manifests) through the Customs Automated System for smooth functioning and clearance of cargo.
To ensure a smooth transition, field formations have been directed to facilitate implementation, address system-related issues and conduct trade outreach activities. Further, no penal action will be initiated during the implementation phase, thereby providing the shipping lines, custodians, terminal operators, customs brokers and SEZ units an additional time to align their systems and processes with the SCMTR framework.
CBIC rationalizes documentation requirements under Eligible Manufacturer Importer (EMI) Scheme
Circular No. 39/2026-Customs dated 3 September 2026
CBIC has simplified the Eligible Manufacturer Importer (EMI) Scheme with the objective of reducing compliance requirements and enhancing access to the deferred customs duty payment facility under section 47(1) of the Customs Act, 1962. The revised framework significantly streamlines the application process by reducing the number of data fields and limiting mandatory document uploads to only three, viz., UDYAM certificate (where MSME status is claimed), a Chartered Accountant's Certificate bearing UDIN, and an authorisation letter.
Several documents previously required, including IEC, PAN, GST registration certificates, GST returns, audited financial statements and premises-related documents, have been dispensed with, while verification of GST registration status, turnover and tax payment history will now be undertaken through backend IT systems.
Effective from 15 September 2026, the changes are expected to lower compliance costs, improve ease of doing business and encourage greater participation in the EMI Scheme.
Launch of National Assessment Centre (NAC) portal for effective dissemination of Customs information
Circular No. 41/2026-Customs dated 3 September 2026
CBIC has launched the National Assessment Centre (NAC) portal as a centralized platform to promote uniformity, transparency and consistency in Customs assessments. The portal provides a comprehensive repository of NAC decisions, CAAR rulings, legal precedents, advisories, audit observations and guidance relating to classification, valuation and other assessment matters. It also offers access to NAC meeting minutes, policy issues, alerts, circulars and trade facilitation information, supported by a keyword-based search facility. The initiative is expected to improve access to assessment-related knowledge, reduce interpretational disputes and enhance certainty and consistency for importers, customs brokers and Customs field formations.
Export declarations to have additional qualifiers/identifiers for Textiles PLI Scheme w.e.f. 1 November 2026
Circular No. 42/2026-Customs dated 24 September 2026
CBIC has mandated the declaration of additional qualifiers / identifiers in export documents for specified textile products falling under certain tariff items of Chapters 52, 55 and 60, effective 1 November 2026. The initiative is aimed at enabling clear identification of Flame Retardant (FR) and Non-Flame Retardant textile products for effective implementation of the PLI Scheme for Textiles.
Accordingly, exporters will be required to declare the prescribed identifiers in Shipping Bills, namely FR001 (Flame Retardant Fabric) and FR009 (Other than Flame Retardant Fabric), in the Customs Automated System. The measure is expected to improve product traceability and facilitate accurate administration of PLI benefits for the textile sector.
CBIC clarifies application of section 28DA and CAROTAR under trade agreements
Circular No. 43/2026-Customs dated 24 September 2026
CBIC has clarified that where Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR) provisions conflict with the Rules of Origin under a Trade Agreement, the provisions of the relevant Trade Agreement shall prevail. For imports under the India-UK CETA, a valid Origin Declaration issued by the UK exporter or producer will be sufficient to claim preferential tariff benefits, without the need to submit Form-I. The Circular also restricts origin verification to risk-based cases and provides that FTA benefits cannot be denied solely due to the importer's inability to furnish confidential exporter information.
Clarification on EPR registration for import of plastic packaging materials
Instruction No.15/2026-Customs dated 9 September 2026
CBIC has streamlined customs clearance for imports of plastic packaging, plastic raw materials and goods packed in plastic packaging by directing Customs authorities to accept and verify Extended Producer Responsibility (EPR) registrations obtained through the CPCB’s Common EPR Portal. It has also clarified that EPR certificates issued with a one-year validity are to be treated as one-time registrations and accepted as valid proof of compliance without renewal, in line with amendments to the Plastic Waste Management Rules.
Foreign Trade Policy updates
DGFT exempts RCMC requirement for low-value export consignments
Notification No. 36/2026-27 dated 15 September 2026
DGFT has provided a de minimis exemption from the requirement of obtaining Registration-Cum-Membership Certificate (RCMC) for export consignments with an FOB value not exceeding INR 3 lakhs.
The exemption aims to promote small-value exports, particularly those undertaken through postal, courier, and other emerging export channels, by reducing compliance requirements. Accordingly, exporters undertaking eligible low-value shipments can now export without obtaining an RCMC or Certificate of Registration from the relevant Export Promotion Council or Commodity Board.
However, the RCMC requirement will continue to apply to export consignments with FOB value exceeding INR 3 lakhs, wherever mandated under the Foreign Trade Policy, 2023.
DGFT introduces Open API integration for Certificates of Origin
Trade Notice No. 25/2026-27 dated 7 September 2026
DGFT has launched an Open API facility on the Trade Connect e-Platform to facilitate the electronic issuance of Certificates of Origin (CoO), covering both preferential and non-preferential certificates. This facility enables exporters to integrate their ERP, accounting, and other business systems with DGFT’s CoO platform, thereby automating data exchange and reducing manual intervention in the application process.
Accordingly, exporters can obtain API credentials, configure digital signing mechanisms, and complete system integration through the API Management section of the CoO portal.
The initiative is aimed at promoting digitalization, operational efficiency, and ease of doing business by streamlining the CoO application and certification process.