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Simplifying GST Compliance, Expanding ITC and Reducing Litigation India’s Goods and Services Tax system has undergone several major changes since its introduction in 2017. The next phase of reform is now being discussed as “GST 2.0” , with the focus shifting beyond tax-rate rationalisation towards making GST easier to administer, improving access to Input Tax Credit (ITC), speeding up refunds and reducing unnecessary litigation. The proposed reforms are expected to be considered by the GST Council , with the latest reports indicating that its upcoming meeting on 7 October 2026 may examine several measures relating to ITC, registration, refunds, e-way bills, enforcement and compliance. ⚠️ Important: The measures discussed in this article are proposals under consideration. They should not be treated as final law until the appropriate notifications, amendments, rules or circulars are officially issued. What Is GST 2.0? GST 2.0 represents the next stage in the evolution of India's in...

Important Income Tax Compliance Update for Payers The Income-tax Rules, 2026 have introduced several changes in the way tax deduction declarations are handled. One important change is the introduction of Form No. 121 , which replaces the earlier Forms 15G and 15H for declarations relating to receipt of certain incomes without deduction of tax. For the quarter ending September 2026 , persons responsible for paying specified income and receiving Form No. 121 declarations must ensure that the required declarations are properly reported within the prescribed timeline. 📅 Due Date: 7 October 2026 This deadline is particularly relevant for payers who received Form No. 121 declarations during the quarter ending September 2026. Proper reporting, identification and record-keeping are important parts of the new TDS compliance framework. What Is Form No. 121? Form No. 121 is a declaration under Section 393(6) of the Income-tax Act, 2025 , read with Rule 211 of the Income-tax Rules, 2026 . It is ...

🌍 Important FEMA Update for Service & Software Exporters Indian businesses providing services to overseas customers have an important new FEMA compliance requirement from 1 October 2026 . Under the new Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 , exporters of services are required to furnish an Export Declaration Form (EDF) declaring the full export value of their services. The change brings service exports, software exports and goods exports under a more unified declaration framework. One of the most significant changes is for software exporters. Under the earlier framework, software exports were reported through the SOFTEX mechanism. From 1 October 2026, the new framework uses EDF for software exports as well , subject to the applicable procedures. This means businesses such as software companies, SaaS providers, IT/ITeS businesses, consultants, agencies, freelancers and other service providers receiving export income should review ...

 Simplifying GST Registration for Multi-State Businesses Businesses operating across multiple States and Union Territories have traditionally had to go through a separate GST registration application process for each State. This often meant entering common business information repeatedly, managing multiple Temporary Reference Numbers (TRNs), and tracking applications separately. The GST Portal has now introduced a new “Multi-State Registration” facility that simplifies the initial registration process for businesses requiring GST registrations in multiple States or Union Territories. The facility, reported as available from 1 October 2026 , allows eligible taxpayers to select multiple States/UTs and initiate the registration process through a common workflow. A Master TRN is generated for the selected States/UTs, with State-specific TRNs subsequently created for the individual applications. This can reduce repetitive data entry and make the registration process easier to manage. ...

  🚨 Important Income Tax Update for Non-Residents The Central Board of Direct Taxes (CBDT) has announced an important extension of the income-tax compliance timeline for certain taxpayers for Assessment Year 2026-27 . One of the important compliance reports affected by the revised timeline is Form 3CE , the audit report prescribed under Section 44DA(2) of the Income-tax Act, 1961 . Form 3CE is relevant to specified non-resident taxpayers and foreign companies receiving income by way of royalty or fees for technical services (FTS) from the Government of India or an Indian concern, where the income is taxable under the provisions of Section 44DA. The applicable audit-report deadline has been extended from 30 September 2026 to 21 October 2026 for taxpayers covered by the relevant category. This extension follows CBDT Circular No. 07/2026 dated 28 September 2026 , under which the ITR deadline for specified audit-category taxpayers has been extended from 31 October 2026 to 21 Novembe...