Weekly Tax & Regulatory Round-Up (15–21 June 2026)

This weekly update consolidates the most important statutory and regulatory changes, departmental advisories, and judicial developments issued between 15 June 2026 and 21 June 2026 across GST, Customs, Central Excise, DGFT, SEBI, MCA, IBBI, RBI, and other key regulators. It is designed as a practical reference for finance teams, professionals, and corporate decision-makers to quickly understand what has changed and where action is required.

Note: Hyperlinks mentioned in the source notifications/circulars are retained in description form only. Assessees should download and refer to the original documents before implementation.

A. Income Tax

No fresh Notifications or Circulars were issued by the Central Board of Direct Taxes (CBDT) under the Income Tax Act 1961 during the period 15–21 June 2026.

B. Goods and Services Tax (GST)

1. GSTN Advisory – e-Invoicing & e-Way Bill API Enhancements

Effective 1 August 2026, the Goods and Services Tax Network (GSTN) is rolling out critical changes to the e-Invoice API and e-Way Bill by IRN API:

  • Mandatory Ship-to GSTIN (Conditional)

    • In Bill-to/Ship-to transactions where an e-Way Bill is required, the Ship-to GSTIN field will become conditionally mandatory.
    • If the consignee is unregistered or the GSTIN is not available, the value “URP” can be entered.

  • Validation Controls
    New system validations will ensure:

    • The GSTIN format is correct and active.
    • Bill-to and Ship-to GSTINs are not identical in cases where they are expected to be different.
    • State codes and PIN codes are logically consistent with the respective GSTINs.

  • Voluntary Closure of e-Way Bills
    A new functionality allows:

    • Suppliers, recipients, transporters, or other authorised persons to voluntarily close e-Way Bills once goods have been delivered.
    • Closure through portal interface as well as APIs.

Actionable Point: Assessees using ERP integrations or GST APIs must ensure their systems are updated to accommodate Ship-to GSTIN validations and closure APIs before 1 August 2026.
(Reference: GSTN Advisory dated 17/06/2026)

2. AAAR – ITC on QIP Services Restricted to Debt Repayment

Case: RHI Magnesita India Ltd, AAAR Haryana Ruling Dated 22nd May 2026

The Appellate Authority for Advance Ruling (AAAR), Haryana, has provided significant clarity on Input Tax Credit (ITC) treatment of expenses incurred for Qualified Institutional Placement (QIP):

  • Services availed from merchant bankers, rating agencies, consultants, legal professionals, and similar advisors for executing a QIP have a direct connection with capital raising.
  • Such services are considered to be used “in the course or furtherance of business”, thereby satisfying the basic ITC eligibility test.
  • However, ITC is allowed only to the extent that QIP proceeds are actually used for:
    • Repayment or prepayment of borrowings or debts.
  • ITC is disallowed for the portion of QIP proceeds invested in:
    • Equity shares of a wholly owned subsidiary of the applicant.

Implication: Corporate assessees raising funds via QIP must track end-use of funds precisely. ITC may need to be proportionately reversed for the part of funds used for equity investments in group entities.

3. AAAR – No ITC on Solar Power Plant Used for Exempt Electricity

Case: SBF Ispat Pvt Ltd, AAAR Rajasthan Ruling Dated 20th May 2026

The Rajasthan AAAR upheld the earlier AAR decision that:

  • ITC is not available on:
    • Inputs
    • Capital goods
    • Input services
      used in design, engineering, erection, installation, commissioning and operations of a solar power plant.
  • The decisive factor is that the electricity generated is supplied to the DISCOM grid and is treated as an exempt outward supply under GST (electricity presently attracts Nil GST).
  • Since the plant is exclusively used for generating exempt supply, Section 17 restrictions apply and ITC is barred in full.

Implication: Entities investing in renewable energy projects solely for exempt electricity supplies must budget for GST costs on project inputs as a sunk cost, with no credit entitlement.

4. AAR – Supplies from Bonded Warehouse to Vessels Not Treated as Exports

Case: Sanctum Trading Corporation Pvt Ltd, AAR Maharashtra Ruling Dated 30th March 2026

The Maharashtra AAR held:

  • Supplying goods from a bonded warehouse to:
    • Ocean-going vessels
    • Indian Navy ships
    • Indian Coast Guard vessels
      does not qualify as “export of goods” under the IGST Act, as the goods are delivered within India.
  • Mere use of such goods beyond territorial waters or by specified entities does not convert the supply into an export unless the transaction satisfies the statutory definition of export (i.e., taking goods out of India).

Implication: Assessees dealing in bonded warehouse supplies to vessels need to treat such clearances as domestic supplies for GST purposes, not zero-rated exports, unless statutes are specifically amended.

5. AAR – GST on MHADA Flats Due to Pre-OC FSI Allotment

Case: Vedant Construction, AAR Maharashtra Ruling Dated 30th March 2026

Key findings:

  • The assessee constructed 19 EWS/LIG flats intended for allottees identified by MHADA/HADA.
  • As the developer had already received additional Floor Space Index (FSI) before the Occupancy Certificate was granted:
    • The supply of these flats is treated as a taxable supply of construction service under GST.
  • Consequently, GST is applicable on the supply of such flats, and the benefit of post-OC tax exclusion is not available.

Implication: Developers entering into arrangements where FSI benefits accrue prior to OC must carefully assess time of supply and taxability of units allotted to development authorities or their nominees.

6. AAR – Works Contract to Local Authority Eligible for Exemption

Case: Rockline Construction, AAR Maharashtra Ruling Dated 30th March 2026

Maharashtra AAR analysed a works contract awarded to Katol Nagar Parishad:

  • The supply in question is a composite supply in the nature of works contract, and not a pure service.
  • The recipient is a Local Authority.
  • The supply qualifies under Entry 3A of Notification 12/2017 – Central Tax (Rate).
  • Accordingly, the applicant is entitled to GST exemption for such composite works contract supply.

Implication: Contractors executing eligible works contracts for local authorities should examine whether the goods portion is within the prescribed threshold and whether Entry 3A conditions are satisfied to claim exemption.

7. Supreme Court – No Pre-Deposit Required Where Appeal Provision Amended Later

Case: MM Traders vs State of UP, SC Judgement Dated 25th May 2026

Facts and interim relief:

  • An appealable order under GST was passed on 1st January 2025.
  • Subsequent amendment introducing a pre-deposit requirement for further appeal came into effect from 1st October 2025.
  • The assessee contended that the new pre-deposit condition could not apply retrospectively to an order passed much earlier.
  • As an interim arrangement, the Supreme Court:
    • Permitted the assessee to file the appeal.
    • Directed that the appeal be entertained without insisting on pre-deposit.

Implication: For orders predating introduction of pre-deposit requirements, assessees may contest retrospective application; however, final legal position will turn on the ultimate outcome of the Special Leave Petition.

8. Delhi High Court – 2019 Amendment to GST Refund Limitation is Prospective

Case: Kanika Exports vs Union of India, HC Delhi Judgement Dated 18th April 2026

Key holding:

  • The exporter’s refund application filed on 29 March 2020 was governed by the unamended Explanation 2(e) to the relevant GST refund provisions.
  • The court concluded that the 2019 amendment to limitation does not operate retrospectively.
  • Orders rejecting refund relying on the amended explanation were therefore set aside.
  • The GST authorities were directed to process the refund claims on merits and pass orders within three months.

Implication: Exporters who filed refunds around the amendment period may challenge rejections based solely on retrospective application of amended limitation explanations.

C. Central Excise

1. Increase in SAED on Export of ATF

  • Special Additional Excise Duty (SAED) on export of Aviation Turbine Fuel (ATF) has been revised.
  • New rate: Rs 12.50 per litre (earlier Rs 9.50 per litre).
  • Effective from 16 June 2026.
  • Notified via Central Excise Notification 31/2026 (T) dated 15/06/2026, amending Notification 08/2026 dated 26th March 2026.

2. Increase in SAED on Export of Diesel

  • SAED on export of Diesel has been modified.
  • New rate: Rs 14.00 per litre (earlier Rs 13.50 per litre).
  • Effective from 16 June 2026.
  • Notified via Central Excise Notification 30/2026 (T) dated 15/06/2026, amending Notification 06/2026 dated 26th March 2026.

Implication: Export-oriented refineries and traders must immediately revise pricing models and compliance systems to factor higher SAED on ATF and diesel exports from 16 June 2026.

D. Customs

  • Navi Mumbai has been added as an International Courier Terminal.
  • Inserted as a new entry at Serial No. 15 in the table under Notification 27/2018 (NT) dated 28th March 2028.
  • Implemented via Customs Notification 57/2026 (NT) dated 18/06/2026.

This will facilitate international courier movements through Navi Mumbai with dedicated customs handling.

2. Reorganisation of Customs Jurisdiction in Maharashtra

  • Customs Notification 56/2026 (NT) dated 16/06/2026 rationalises and clarifies:
    • Territorial jurisdiction of customs formations in Maharashtra.
  • Objective:
    • Enhance administrative clarity
    • Avoid jurisdictional overlaps
    • Ensure efficient enforcement and facilitation.

Assessees in Maharashtra should verify which customs formation now has jurisdiction over their ports, ICDs, and associated locations.

3.