Law Updates

Subject

Summary: The Ministry of Finance, Department of Revenue, has issued a notification dated 30 May, 2026, granting a complete exemption from the Basic Customs Duty (BCD) and the Agriculture Infrastructure and Development Cess (AIDC) on the import of cotton falling under the Heading 5201 of the Customs Tariff Act, 1975. The exemption has also been introduced in the public interest under Section 25(1) of the Customs Act, 1962, and Section 124 of the Finance Act, 2021. The measure is also aimed at facilitating the availability of cotton for domestic industries, particularly in the textile and apparel sector, and also helping to stabilize input costs. The notification will also come into effect from 1 June 2026 and will remain valid up to and including 31 October 2026. During this period, eligible cotton imports will be exempt from the entire customs duty as well as the Agriculture Infrastructure and Development Cess otherwise applicable on such imports. Businesses that are also engaged in cotton import and textile manufacturing should review their procurement and supply chain strategies to take advantage of this temporary duty relief.

Subject

Summary: The Ministry of Finance, Department of Revenue, has issued a notification on 18th August 2025 under the Customs Act, 1962 and the Finance Act, 2021. Through this notification, the Central Government has granted full exemption from customs duty and Agriculture Infrastructure and Development Cess on the import of cotton, classified under heading 5201 of the Customs Tariff Act, 1975. The decision has been taken in public interest to support domestic industries and ensure adequate raw material availability. This exemption will apply to all imports of cotton into India during the specified period. The notification clearly states that the exemption shall come into effect from 19th August 2025 and remain valid till 30th September 2025. By temporarily removing these duties, the government aims to ease pressure on the textile sector, stabilize raw material costs, and promote smooth supply chain operations in the cotton and allied industries during this period.

Subject

Summary: The Ministry of Finance has issued the Income-tax (Twentieth Amendment) Rules, 2025 to amend the Income-tax Rules, 1962. This change updates rule 21AK under the Income-tax Act, 1961. The amendment adds over-the-counter derivatives along with offshore derivative instruments. It also includes Foreign Portfolio Investors (FPIs) as units of the International Financial Services Centre (IFSC). The term “Foreign Portfolio Investor” is now clearly defined as per the SEBI (FPI) Regulations, 2019. These updates aim to improve clarity and expand coverage of the tax rules for financial entities in IFSCs. The CBDT notification ensures the rules are effective from the date of publication in the Official Gazette. This amendment supports India’s goal to streamline taxation for global investors operating through IFSCs.

Subject

Summary: As per the Government of India, Ministry of Finance (Department of Revenue) notification dated 24th April 2025, several important amendments and updates have been made to the GST Appellate Tribunal rules. The following textual corrections and clarifications are made: (i) In Chapter XIV, Rule 115(1), the phrase “Notwithstanding anything contained in the foregoing Chapters I to XIV, except as may be otherwise provided by order by the President,” shall now read as “Notwithstanding anything contained in the foregoing chapter I to Chapter XIV, except as may be otherwise provided by order by the President, the provisions of this rule shall apply.” (ii) In the schedule of fees for Interlocutory Applications, the reference to Rule “118(2)” shall be read as “119(2)”. (iii) In GSTAT FORM-05, the citation “[See rule 6 and 81]” shall now read as “[See rule 81]”. (iv) In Rule 2(b), the phrase “section sub-section” shall be corrected to “sub-section”. (v) In Rule 103(5), the requirement that “Every order or judgement or notice shall bear the seal of the Appellate Tribunal” is modified to exclude orders passed online and digitally signed.    

Subject

Summary: The GOI of India on 13th April released an official notification stating that the customs duty on the import of cotton will be removed till 30th September 2022. This will not only help boost our manufacturing and exports but also bring down prices benefiting consumers.   [TO BE PUBLISHED IN GAZETTE OF INDIA, EXTRAORDINARY, PART ||, SECTION 3, SUB-SECTION (1)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) New Delhi, the 13th of April 2022                  G.S.R.   (E). In exercise of the powers conferred by sub-section (1) of section 25 of the customs Act, 1962 (52 of 1962) and section 124 of the finance Act, 2021 (13 of 2021) (hereinafter referred to as the said section), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts goods of the description specified in column (3) of the Table below and falling within the Chapter, heading, sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975, (51 of 1975) as specified in column (2) of the said Table, when imported into India, from so Much of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975),  as is in excess of the amount calculated at the standard rate specified in the corresponding entry in column (4) of the said Table and from so much of the Agriculture Infrastructure and Development Cass (hereinafter referred to as AIDC) leviable thereon Under the said section, as is in excess of the amount calculated at the rate specified in column (5) of the said Table, namely:-