Thinking Beyond News Letter - June-2026

SECTION 01

Analytical Articles

SECTION 02

Customs & FTP Updates

SECTION 03

GST Updates

1

Insightful Article on GST, Customs and Foreign Trade Policy.

A  Foreign Assets Disclosure Scheme (FAST-DS 2026): Income Tax Relief vs FEMA Risks - What Every Individual Must Know Before Disclosure

Published in May'26 edition of The Bombay Chartered Accountant Journal

CA Shilpi Jain (Partner - HNA)  |  CA Stephanie Mendonza

The Union Budget 2026 introduced a one-time Foreign Assets Disclosure Scheme (FAST-DS 2026) to provide a compliance window to individual taxpayers for regularising past non-disclosures of overseas income and assets. The scheme permits voluntary disclosure of undisclosed foreign income and foreign assets up to ?5 crore and cases involving mere reporting lapses, where income has already been offered to tax in India but the corresponding foreign assets were not disclosed, up to ?1 crore. Eligible individuals can regularise such defaults by paying the prescribed tax and penalty and obtain immunity from prosecution and penal consequences under the Income-tax Act and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The scheme is strictly restricted to individuals and does not extend to companies, LLPs, firms, trusts, or other non-individual entities.

While the scheme offers significant relief from an income-tax standpoint, tax regularisation does not automatically translate into regulatory regularisation, particularly under the Foreign Exchange Management Act, 1999 (FEMA). The framework for tax regularisation and that of exchange-control compliance operate in distinct, albeit intersecting, domains.

Read full article

B  Exchange Control Risk related to new Income Tax Disclosure Scheme

Exchange Control Risk related to new Income Tax Disclosure Scheme

CA Shilpi Jain (Partner - HNA)  |  CA Stephanie Mendonza

Budget 2026 introduced a new Foreign Assets Disclosure Scheme ('Scheme') providing an option to individual taxpayers to regularise previous non-disclosures of foreign assets and income arising therefrom. Suo-moto disclosure of undisclosed foreign income and foreign assets up to ?5 crore and cases involving reporting lapses is permitted, in situations where income has already been offered to tax but the corresponding foreign assets were erroneously not reported, up to ?1 crore. Defaults can be regularised by eligible individuals. Such individuals would need to pay the prescribed tax and penalty and would consequently be afforded immunity from prosecution and penal consequences under the Income Tax Act and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The Scheme extends only to individuals; and other persons such as companies, LLPs, firms, trusts, or other non-individual entities would not qualify for disclosures under the Scheme.

Although the Scheme provides relaxation under income tax, such relief does not expand into regulatory regularisation under the exchange control framework. The bulwark for tax regularisation and that of exchange-control compliance operate in separate domains.

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2

Customs and FTP Updates

Customs-Tariff

Notification

Notification No. and Date of issue

Subject

21/2026-Customs(T) Dated 09-June-2026

Seeks to amend Notification No. 62/2022-Customs to exempt goods under Tariff Item 26020010 from Basic Customs Duty.

Summary:

The Ministry of Finance has issued a notification amending Notification No. 62/2022-Customs under Section 25(1) of the Customs Act, 1962. The amendment inserts a new Serial No. 825A in Table I, prescribing a Basic Customs Duty (BCD) rate of 0% for all goods falling under Tariff Item 26020010. This amendment grants a complete exemption from BCD on the specified goods imported under the said tariff item, in the public interest.

Read more: https://taxinformation.cbic.gov.in/view-pdf/1010681/ENG/Notifications

3

GST Updates

Sl.No

Date

Functionality

Particulars

01

01-06-2026

Gross and Net GST revenue collections for the month of May 2026

The Gross and net revenue for the month of May-26 was declared. The same can be checked by clicking on –

https://tutorial.gst.gov.in/downloads/news/monthly_gst_data_for_mar_2026_for_publishing_final.pdf

02

09-06-2026

Extension of timeline for implementation of mandatory “Ship To GSTIN” and Voluntary Closure of EWay Bill functionalities

Reference is invited to the GSTN Advisory dated 20.05.2026, wherein it was informed that the following functionalities would be implemented in the EWay Bill system with effect from 15th June 2026.

Read More

03

17-06-2026

Advisory on e-Invoice API and e-Way Bill by IRN API changes for mandatory

Reference is invited to the GSTN Advisory dated 20.05.2026 regarding enhancements in the e-Way Bill system, wherein it was informed that “Shipto GSTIN” shall be mandatorily captured in Bill-to/Ship-to transactions. It was also clarified that where the consignee is an unregistered person, the value “URP” shall be entered in the Ship-to GSTIN field.

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GST

Circulars

Circular No. and Date of issue

Subject

Circular No. 255/01/2026-GST Dated 25-June-2026

Seeks to clarify the jurisdictional authority responsible for handling proceedings in cases involving migration/transfer of taxable persons from one GST jurisdiction to another.

Summary:

This Circular clarifies that any action or proceeding validly initiated by the transferor jurisdictional authority before the migration/transfer of a taxable person shall remain legally valid. The transferee jurisdictional authority shall continue the proceedings from the stage at which they stood, implement and act upon the earlier actions, and undertake all consequential proceedings, including adjudication, appeals, and representation before appellate authorities or tribunals. The transferor jurisdictional authority shall not initiate any fresh proceedings after the transfer and shall instead communicate any subsequent issues to the transferee jurisdictional authority for appropriate action.

Read more: https://taxinformation.cbic.gov.in/view-pdf/1003329/ENG/Circulars