Tax & Compliance Updates — India & UAE
Curated summaries of the latest Income Tax, GST, VAT and Corporate Tax developments — plus direct links to the official government portals so you can always verify the source yourself.
Verify Directly with Official Government Portals
For your peace of mind, every update below is based on public information from these official sources. We always recommend cross-checking directly before making decisions.
Income Tax Department, India
Official portal for e-filing, notifications, circulars & the Income-tax Act.
GST Portal, India
Official GST registration, returns, e-way bill & council notifications.
Federal Tax Authority, UAE
Official VAT, Corporate Tax & Excise Tax portal for the UAE.
Ministry of Corporate Affairs (MCA), India
Official ROC filings, company & LLP compliance, notifications and circulars.
Latest Updates
A running list of recent amendments and deadlines relevant to our India and UAE clients.
New Income-tax Act, 2025 now in force
The Income-tax Act, 2025 has replaced the six-decade-old 1961 Act from 1 April 2026, simplifying the law from 819 sections to 536 sections. Applicable from FY 2026-27 onward.
Tax-free income up to ₹12 lakh
The new tax regime’s basic exemption limit has been raised so income up to ₹12 lakh is tax-free, along with the 50% HRA exemption now extended to four more cities.
E-Way Bill / e-Invoice API changes put on hold
GSTN has deferred the previously announced Ship-to GSTIN and e-Way Bill enhancements that were due to take effect 1 August 2026; no system changes are required until further notice. Official GSTN advisory ↗
GSTR-3B auto-populates tax liability breakup
The GST portal now auto-populates the “Tax Liability Breakup, As Applicable” for any interest or tax from a previous period being discharged in the current GSTR-3B.
ITC hard-locking to GSTR-2B now in effect
Input Tax Credit claimed in GSTR-3B is now hard-locked to what is auto-populated from GSTR-2B via the Invoice Management System (IMS); businesses should keep vendor reconciliation tight to avoid mismatches.
TDS exemption on lease rent paid to IFSC ship & aircraft leasing units
CBDT Notifications No. 74/2026 and 75/2026 remove the requirement to deduct TDS on lease rent paid to eligible IFSC units engaged in aircraft and ship leasing, with retrospective effect from 1 April 2026. Income Tax Department ↗
TDS exemption widened for IFSC Units on interest, dividend & fee income
CBDT Notification No. 80/2026 (10 July 2026) exempts specified payments — interest, dividends, professional fees, commission and brokerage — made to 14 categories of eligible IFSC units from TDS, subject to Form 1(N) verification. Income Tax notifications ↗
New ITR-BN form for block assessment cases
CBDT Notification No. 97/2026 (Income-tax Third Amendment Rules, 2026) introduces Form ITR-BN, the new return format for block assessment cases arising from search and requisition proceedings under the Income-tax Act, 2025, effective from 1 April 2026. Income Tax notifications ↗
Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS)
CBDT Notification No. 114/2026 notifies the FAST-DS Rules, 2026 (in force from 16 August 2026), a one-time window for eligible taxpayers to voluntarily declare specified undisclosed foreign assets or income; declarations must be filed by 31 December 2026. Income Tax Department news ↗
GST Portal now allows appeals against NIL/Zero demand orders
GSTN has removed the portal validation that blocked filing Form GST APL-01 appeals where the demand order shows a NIL or zero amount, restoring the statutory right of appeal under Section 107 even after the disputed amount was already paid. GSTN Advisory ↗
Income-tax (Fourth Amendment) Rules, 2026 notified
CBDT Notification No. 120/2026 amends the Income-tax Rules, 2026, easing e-communication requirements, updating tax recovery procedures under Rule 225, and tightening disclosure norms for registered valuers. Income Tax notifications ↗
TDS on non-resident property transfers simplified — new Form 141 Schedule E
CBDT Notification No. 121/2026 revises Form 132 and adds a new Schedule E to Form 141 for reporting TDS on transfer of immovable property by non-residents, removing the TAN requirement for buyers, effective 1 October 2026. Income Tax notification ↗
GSTN Advisory 672 — emSigner v3.3 for new DSC USB tokens
New DSC USB tokens or certificates issued on or after 21 September 2026 require GSTN’s updated emSigner v3.3 for digital signing on the GST Portal; existing DSCs and tokens that already work do not need to upgrade immediately. GSTN Advisory 672 ↗
ITR & tax audit due dates extended for AY 2026-27
CBDT Circular No. 07/2026 extends the due date for filing Income Tax Returns for AY 2026-27 (audit cases) from 31 October to 21 November 2026, and the tax audit report due date from 30 September to 21 October 2026. CBDT press release ↗
GST Portal launches Multistate Registration facility
GSTN has introduced a new “Multistate Registration” facility allowing taxpayers to apply for GST registration across multiple States/UTs simultaneously under a single Master TRN, while each State/UT application still results in its own separate GSTIN. GSTN Advisory ↗
57th GST Council meeting recommends major compliance reforms
The GST Council recommended removing arrest powers for GST offences, raising the prosecution threshold from ₹1 crore to ₹5 crore, wider ITC relief on employee insurance, telecom infrastructure and free samples, and automatic acceptance of most GST registration amendments; formal notifications are expected to follow. GST Council updates ↗
CBDT revises appellate authority hierarchy under Section 238
Notification No. 133/2026 provides that Joint Commissioners and Additional Commissioners of Income-tax (Appeals) are now subordinate to the Principal Chief Commissioner/Chief Commissioner of Income-tax within whose jurisdiction they function. Income Tax notifications ↗
AOC-4 — Annual Financial Statements filing
Must be filed within 30 days of the AGM. Late filing attracts ₹100/day additional fee with no cap. MCA Annual e-Filing ↗
MGT-7 / MGT-7A — Annual Return filing
Due within 60 days of the AGM. MGT-7A applies to small companies and OPCs. MCA Annual e-Filing ↗
LLP Annual Filings — Form 11 & Form 8
Form 11 (Annual Return) and Form 8 (Statement of Account & Solvency) are mandatory for every LLP, even with nil activity. MCA Portal ↗
New RoC territorial jurisdictions notified
MCA reorganised Registrar of Companies offices with new zone-wise jurisdictions across Delhi, UP, Maharashtra, West Bengal and more. MCA Notifications ↗
Companies (Incorporation) Amendment Rules, 2026
Proposed changes aim to streamline incorporation and reduce compliance burden under the Ease of Doing Business framework. MCA Notifications ↗
MSME Form I — Half-Yearly Return (Apr–Sep 2026)
Companies owing payments to micro or small enterprise suppliers beyond the agreed or 45-day period must file Form MSME-1 for the April–September 2026 half-year, even with nil activity. MCA Portal ↗
VAT credit refund — 5-year rule
VAT credit balances older than 5 years expire. If your credit expired just before or within a year after 1 Jan 2026, the FTA is giving a fresh one-year window to claim it back.
New penalty framework for VAT & Excise
The UAE Cabinet’s reformed penalty regime aligns VAT and Excise Tax penalties with Corporate Tax penalties for more consistent enforcement.
Reverse charge — no more self-invoices
Businesses using the reverse charge mechanism no longer need to issue separate self-invoices — regular supporting documentation is now sufficient evidence.
E-invoicing mandate begins rollout
A voluntary e-invoicing pilot starts July 2026, becoming mandatory for businesses with revenue above AED 50 million from January 2027, with smaller businesses phased in after.
FTA increasing audits & enforcement
The FTA’s focus has shifted from onboarding to active auditing, with particular attention on businesses that filed an initial Corporate Tax return and then went quiet.
VAT Public Clarification No. 40 — Executive Regulation amendments
The FTA’s largest VAT Executive Regulation overhaul since 2018 clarifies composite supplies, profit margin scheme costs, export zero-rating evidence, and input VAT recovery on employee medical insurance. Read VATP040 on tax.gov.ae ↗
FTA publishes summary of Private Clarifications (up to May 2026)
The Federal Tax Authority has consolidated its Corporate Tax private clarifications into a single FAQ-style reference covering common taxpayer queries on Free Zones, exemptions and compliance. Read the FTA summary (PDF) ↗
FTA clarifies downward transfer pricing adjustments
Public Clarification CTP011 confirms taxpayers may make downward transfer pricing adjustments under Article 34(1) on a self-assessment basis without prior FTA approval, provided they are fully disclosed with benchmarking, reconciliation and evidence of a symmetrical adjustment by the related party. Read CTP011 on tax.gov.ae ↗
FTA Directive on converting digital currency to AED for VAT
Directive on Tax Transactions No. 3 of 2026 sets out the method for converting the value of consideration received in digital currencies into AED for VAT purposes. Read Directive No. 3/2026 on tax.gov.ae ↗
FTA directive on valuing deemed supplies of services
Directive on Tax Transactions No. 5 of 2026 clarifies the method to determine the value of deemed supplies of services for VAT purposes. Read Directive No. 5/2026 on tax.gov.ae ↗
FTA issues Basic Tax Information Bulletin for Small Business
The Federal Tax Authority published a new Corporate Tax Business Bulletin summarising key obligations and reliefs for small businesses. View on tax.gov.ae ↗
FTA Decision No. 12 of 2026 on Top-up Tax registration
The Federal Tax Authority set registration and deregistration timelines for entities subject to the domestic Top-up Tax under Cabinet Decision No. 142 of 2024, effective for fiscal years starting on or after 1 January 2025. View FTA Legislation on tax.gov.ae ↗
New FTA Directive on VAT adjustments after exiting a Tax Group
Directive on Tax Transactions No. 2 of 2026 clarifies that a business which exits a UAE VAT Tax Group but remains VAT-registered must account for related output tax and input tax adjustments in its own VAT return. FTA VAT legislation \u2197
Cabinet Decision No. 149 of 2026 amends VAT Executive Regulation
The UAE Cabinet issued Cabinet Decision No. 149 of 2026, amending the VAT Executive Regulation on composite supplies, healthcare zero-rating, employee benefits, input tax recovery/apportionment, the Capital Asset Scheme and cash payments; most changes apply from 1 October 2026. FTA Legislation ↗
FTA Decision No. 13 of 2026 — verifying validity of supplies for input VAT
Taxable persons must verify supplier identity and physical business presence before recovering input VAT, repeating verification at least every 12 months, to guard against recovery linked to tax evasion. Read FTA Decision No. 13/2026 ↗
FTA Decision No. 15 of 2026 on Corporate Tax exemption provisions
The Federal Tax Authority issued FTA Decision No. 15 of 2026, setting out provisions on exemption from Corporate Tax. FTA Legislation ↗
VAT Public Clarification VATP046 issued
The FTA VATP046 clarification covers amendments from Federal Decree-Laws No. 16 of 2024 and No. 16 of 2025, including e-invoicing, input VAT recovery, reverse charge treatment, VAT refund timelines and a wider Fixed Establishment test for foreign businesses. FTA VAT guides & clarifications ↗
FTA Decision No. 17 of 2026 — input VAT on employee benefits
Sets the cases and conditions for recovering input VAT on goods and services provided to employees at no charge — transport, meals, accommodation, mobile/internet and parking — where a contractual obligation or documented policy requires it. FTA VAT legislation ↗
FTA clarifies Free Zone vs VAT Designated Zone tests (TAXP010)
New Public Clarification TAXP010 confirms that a VAT Designated Zone is not automatically a Corporate Tax Designated Zone — businesses must assess Free Zone status separately under each tax law, which is especially relevant for the 0% rate on qualifying distribution income. FTA Guides & Clarifications ↗
Global Tax Advisory has a team of experienced tax specialists who can help you assess your current tax position, advise on the appropriate tax treatment, prepare clarification requests, or represent you before the tax authorities as your registered advisors.
We are happy to discuss your specific circumstances and determine the way forward should you have any questions or concerns — please get in touch with your usual Global Tax Advisory contact, or reach out to our team below.
Not sure how these changes affect your business?
Book a free consultation and we’ll walk you through exactly what applies to you.