Monthly Tax Bulletin: July 2026

Key highlights:

Direct taxes:

• The OECD/G20 Inclusive Framework on BEPS has released the consolidated commentary to the Global Anti‑Base Erosion Model Rules (2026).
• CBDT releases C&AG draft report on Compliance Audit on application of Section 68 to 69D of 1961 Act.
• CBDT issues compulsory scrutiny parameters for returns filed in FY 2025-26.

Transfer pricing:

• Invokes real income theory, nixes taxation of 'excess royalty' refunded basis AE's APA.
• Assessee only reseller/distributor of sim-cards etc., embossing logo will not alter functional profile.
• Auditors' report bears high evidentiary value, disapproves rejection of AE/non-AE segmental profitability sans reasons.

FEMA:

• RBI relaxes investment framework for FPIs in government securities.
• RBI reduces export realisation timelines from 15 months to 9 months.

Indirect taxes:

• Government extends GSTAT appeal filing deadline to 31 July 2026.
• Partners retaining the benefit of GST evasion can be penalised under Section 122(1A), even for pre-2021 transactions – Gauhati HC.
• Flipkart challenges WBAAAR ruling denying GTA exemption on delivery charges.
• India-UK Comprehensive Economic and Trade Agreement (CETA) to enter into force on 15 July 2026.
• Government of NCT of Delhi notifies the Delhi Electric Vehicles Policy, 2026, with effect from 1 July 2026.
• USTR proposes additional Section 301 duties on economies lacking forced labour import controls.
• Government of Gujarat unveils Viksit Gujarat Industrial Policy, 2026.

Monthly Tax Bulletin: July 2026

The July 2026 edition of the Grant Thornton Bharat Monthly Tax Bulletin provides a concise summary of key developments in direct taxes, FEMA, transfer pricing, and indirect taxes for June 2026.

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