GST Compendium: January 2026

Key highlights of the GST Compendium January 2026

• Important updates/announcements: There has been a significant change in the taxation of cigarettes, tobacco, and other ‘sin goods’. Following the recommendations of the 56th GST Council meeting, the compensation cess on certain tobacco products has been removed, and revenue collection has been restructured through higher central excise duties. At the same time, the GST valuation method has shifted from transaction value to a retail sale price–based system.
• Key judicial pronouncements: The Supreme Court dismissed the Revenue’s SLP on the applicability of beneficial TDS rates under tax treaties and also rejected a taxpayer’s appeal by applying a strict 'derived from' test, thereby reflecting a continued tightening of doctrinal boundaries in domestic and cross-border taxation.
• Significant updates in direct taxes: The Income Tax department has issued a detailed guidance on reporting foreign assets and income, and the CBDT has launched the second phase of its NUDGE initiative to strengthen voluntary compliance, including advisories targeting bogus deduction claims. On the international tax front, the OECD released its annual peer review report on the exchange of information on tax rulings.

Download the report

GST Compendium: January 2026

A monthly guide

Learn more about how our GST advisory services can help you

Visit the page