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UPI Framework – Key Highlights UPI Framework – Key Highlights UPI continues to remain free for individuals and small merchants The new UPI framework introduces MDR only for specified merchant transactions , while keeping the vast majority of UPI payments free. 1. Transactions that remain FREE P2P Transactions: All person-to-person UPI transactions remain completely free , irrespective of the amount transferred. P2M transactions up to ₹2,000: No MDR will apply. Small merchants: Merchants receiving up to ₹1 lakh per month through UPI QR under the P2PM category will continue to enjoy zero MDR on all transactions . Approximately 96% of merchant transactions will therefore remain unaffected. 2. Transactions attracting MDR Transaction MDR Merchant payments above ₹2,000 0.4% , capped at ₹300 Essential sectors above ₹2,000 – railways, telecom, insurance, fuel, agricultural inputs ₹5 per transaction Mutual funds, securities, stockbrokers & dealers 0.0...

Legal Basis Under GDPR vs. DPDP Act, 2023 Legal Basis Under GDPR vs. DPDP Act, 2023: Understanding the Fundamental Difference Privacy compliance professionals often use the term “legal basis” when determining whether an organisation can lawfully process personal data. While this concept is central to the EU General Data Protection Regulation (GDPR) , it is important to recognise that the Digital Personal Data Protection Act, 2023 (DPDP Act) follows a different statutory architecture. At first glance, the two frameworks appear similar. Both regulate the processing of personal data, impose obligations on organisations, protect individuals, and recognise consent as an important mechanism for lawful processing. However, the way lawful processing is established is fundamentally different. GDPR: A Multi-Basis Model Under Article 6 of the GDPR , processing of personal data must generally be supported by one of six recognised legal bases: Consent Contractual necessity Legal obligatio...

EPFO Wage Ceiling Revised to ₹25,000 EPFO Wage Ceiling Revised to ₹25,000 1. What is the revised EPFO wage ceiling? The statutory wage ceiling for mandatory EPF/EPS/EDLI coverage has been increased from ₹15,000 to ₹25,000 per month , with effect from 17 September 2026 . 2. Who will come under mandatory EPFO coverage because of this change? Employees whose applicable EPF wages are above ₹15,000 and up to ₹25,000 per month , and who satisfy the applicable statutory conditions, will come within the expanded mandatory coverage. The revision is estimated to bring more than 51 lakh additional employees under EPFO coverage. 3. Does the ₹25,000 ceiling mean PF must be calculated on the employee's entire gross salary? No. The ₹25,000 ceiling is not the same as gross salary. PF is determined with reference to the applicable statutory definition of wages and PF contribution provisions. The document specifically clarifies that gross salary is not automatically the PF wage. 4. What happen...

Court Room Series — G.R. Infra Projects Limited Court Room Series M/s G.R. Infra Projects Limited, Ratlam v. State of Madhya Pradesh & Ors. Court: Supreme Court of India Bench: Justice J.B. Pardiwala and Justice K. Vinod Chandran Civil Appeal No.: 11277 of 2026 Arising out of: SLP (C) No. 33594 of 2025 Date of Order: 19 August 2026 Facts of the Case: M/s G.R. Infra Projects Limited was subjected to a Show Cause Notice dated 13 June 2025 in respect of AY 2018–19. The Department sought to invoke Section 74 of the CGST Act , which permits the extended period of limitation where tax has not been paid or has been short-paid by reason of fraud, wilful misstatement or suppression of facts. The assessee challenged the SCN, contending that the normal limitation under Section 73 had already expired and that the SCN did not contain any specific factual allegations establishing fraud, wilful misstatement or suppression of facts. The Department sought to support the invocation of...

Court Room Series — Bhandari Scrap Traders v. Union of India COURT ROOM SERIES Bhandari Scrap Traders v. Union of India: Section 16(2)(c) of the CGST Act and the ITC Risk for a Bona Fide Recipient The Supreme Court's affirmation of the conditional nature of Input Tax Credit Background: The Supreme Court's decision in Bhandari Scrap Traders v. Union of India & Ors., arising out of Special Leave Petitions (Civil) Nos. 23931/2026, 24088/2026 and 24103/2026, marks an important development in the continuing controversy surrounding Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 ("CGST Act"). The controversy concerns a fundamental question under the GST regime: Can a bona fide recipient be denied Input Tax Credit ("ITC") merely because the supplier, after collecting GST from the recipient, has failed to...

INCOME TAX UPDATE: Notification No. 114/2026 dated 14 August 2026 — Key Points Subject: Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026 01 Key Points Effective date: The Rules come into force from 16 August 2026. Purpose: Provides the procedural framework for the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026, introduced under Chapter IV of the Finance Act, 2026. Valuation date: Foreign assets/income are generally valued with reference to 31 March 2026. ...

GST COURT ROOM SERIES Interest and Penalty Cannot Travel Beyond the Show Cause Notice? Analysis of the Delhi High Court decision in Sh. Bhupender Kumar Proprietor of M/s  Dabas Construction Co. vs. The Commissioner, GST, West Delhi & Another W.P.(C) 1184/2026 , HC-16-642, dt. 11.5.26 Facts The petitioner, a sole proprietor engaged in construction activities, was issued a Show Cause Notice (SCN) dated 29 December 2023 by the GST Department alleging wrongful availment of Input Tax Credit (ITC) relating to Financial Year 2018-19. According to the department, the ITC availed by the petitioner was inadmissible in view of Section 16(4) of the Central Goods and Services Tax Act, 2017, as the credit had been claimed beyond the prescribed time limit. The department further alleged that although the petitioner ultimately reversed the disputed ITC, such reversal was made only in December 2023, nearly four years after the relevant tax period. The petitioner challenged the proceedings p...

                                                                                                                                                         - CA Chaitanya Kumar Income tax Update: CBDT Circular No. 06/2026: Relief for Delay in Filing Form 10AB for Renewal of Section 80G Approval The Central Board of Direct Taxes (CBDT) has issued Circular No. 06/2026 granting relief to charitable trusts and institutions that could not file Form No. 10AB within the prescribed time for renewal of approval under Section 80G(5) of the Income-tax Act. Background Institutions enjoying approval under Section 80G are ...

        GST Update:  GSTN Advisory: Advisory on Revision of Timeline for Amendment of Aggregate Annual Turnover (AATO), 2026 ⃝ GSTN has revised the timeline for amendment of Aggregate Annual Turnover (AATO) for FY 2025-26. ⃝   The change is due to a system upgrade that will automatically update AATO as subsequent  GST returns are filed. The enhanced functionality is being implemented from 1 July 2026. ⃝   Earlier, taxpayers could amend their AATO during the month of May. ⃝   For FY 2025-26, the amendment window has been shifted to 1 July to 31 July 2026. Taxpayers can submit their AATO amendment applications only during this revised period.  The jurisdictional Tax Officer will verify the amended AATO between 1 August and 15  August 2026. ⃝   The revised process aims to improve consistency, accuracy, and uniformity of AATO across  the GST Portal. ⃝  Taxpayers should carefully verify the turnover details before su...