{"id":90984,"date":"2026-10-31T19:01:11","date_gmt":"2026-10-31T13:31:11","guid":{"rendered":"https:\/\/www.taxaj.com/learn\/tax-compliance-updates-31-october-2026\/"},"modified":"2026-10-31T19:01:11","modified_gmt":"2026-10-31T13:31:11","slug":"tax-compliance-updates-31-october-2026","status":"publish","type":"post","link":"https:\/\/www.taxaj.com/learn\/tax-compliance-updates-31-october-2026\/","title":{"rendered":"Tax &#038; Compliance Updates \u2014 31 October 2026"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>11 updates today: 1 Income Tax, 10 GST.<\/strong> The most important are the GST notifications based on the 57th GST Council meeting, which apply from 1 November 2026.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">In this update<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#it-1\">IRRI: CBDT switches off Chapter XIX for its receipts<\/a><\/li>\n\n<li><a href=\"#gst-1\">Scrap and e-waste suppliers taken out of Notification 5\/2017-Central Tax<\/a><\/li>\n\n<li><a href=\"#gst-2\">Buyers of scrap and e-waste added to the GST TDS notification<\/a><\/li>\n\n<li><a href=\"#gst-3\">Reverse charge on scrap and e-waste bought from unregistered persons<\/a><\/li>\n\n<li><a href=\"#gst-4\">Hotels, restaurants, catering, EV transport and delivery services: rate entries revised<\/a><\/li>\n\n<li><a href=\"#gst-5\">New and revised service exemptions<\/a><\/li>\n\n<li><a href=\"#gst-6\">Reverse charge entry 15 and e-commerce delivery services amended<\/a><\/li>\n\n<li><a href=\"#gst-7\">Goods: bio-stimulants, retreaded tractor tyres, psyllium seeds and &#8220;Nominated Agency&#8221;<\/a><\/li>\n\n<li><a href=\"#gst-8\">Special procedure for Toll-Operate-Transfer road maintenance<\/a><\/li>\n\n<li><a href=\"#gst-9\">Circular 265: sublimation paper, toys, used-car margin scheme and bio-stimulants<\/a><\/li>\n\n<li><a href=\"#gst-10\">Circular 266: R&amp;D grants, shipping, vehicle leasing, TRAI, bank FTP and NBFC co-lending<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Income Tax<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"it-1\">IRRI: CBDT switches off Chapter XIX for its receipts<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">CBDT issued Notification No. 138\/2026 (S.O. 5855(E)) dated 28 October 2026 under section 400(1) of the Income-tax Act, 2025. It notifies that Chapter XIX of the Act shall not apply to payments received by the International Rice Research Institute (IRRI), subject to the conditions in the United Nations (Privileges and Immunities) Act, 1947 read with MEA notification S.O. 3230(E) dated 3 October 2017. It comes into force on the date of its publication in the Official Gazette.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action:<\/strong> If you make payments to IRRI, check this notification before deducting or collecting tax at source on those payments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Official source:<\/strong> <a href=\"https:\/\/www.incometaxindia.gov.in\/documents\/d\/guest\/notification-no-138-2026-pdf\" target=\"_blank\" rel=\"noopener\">CBDT Notification No. 138\/2026 dated 28 October 2026<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">GST<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"gst-1\">Scrap and e-waste suppliers taken out of Notification 5\/2017-Central Tax<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Notification No. 06\/2026-Central Tax dated 27 October 2026 (uploaded on the CBIC portal on 28 October 2026) substitutes the proviso in Notification No. 5\/2017-Central Tax, issued under section 23(2) of the CGST Act. From 1 November 2026, that notification does not apply to any person engaged in the supply of used cooking oil (heading 1518), waste and scrap of plastics (heading 3915), waste and scrap of tyres (heading 4004), metal scrap (Chapters 72 to 81) or electrical and electronics waste and scrap (heading 8549).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action:<\/strong> Suppliers of these goods should check whether they need <a href=\"https:\/\/www.taxaj.com\/gst-registration\" target=\"_blank\" rel=\"noopener\">GST registration<\/a> from 1 November 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Official source:<\/strong> <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1010812\/ENG\/Notifications\" target=\"_blank\" rel=\"noopener\">Notification No. 06\/2026-Central Tax<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Detailed explainer:<\/strong> <a href=\"https:\/\/www.taxaj.com\/learn\/gst-2-0-57th-council-reforms\/\" target=\"_blank\" rel=\"noopener\">57th GST Council Meeting Recommendations: What Is Live and What Is Pending<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"gst-2\">Buyers of scrap and e-waste added to the GST TDS notification<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Notification No. 07\/2026-Central Tax dated 27 October 2026, issued under section 1(3) read with section 51 of the CGST Act, substitutes clause (d) of Notification No. 50\/2018-Central Tax. From 1 November 2026, the clause covers any registered person receiving supply of used cooking oil (1518), plastic waste and scrap (3915), tyre waste and scrap (4004), metal scrap (Chapters 72 to 81) or electrical and electronics waste and scrap (8549) from another registered person.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action:<\/strong> Registered buyers of these goods should check their GST TDS obligations under section 51 for purchases from 1 November 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Official source:<\/strong> <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1010813\/ENG\/Notifications\" target=\"_blank\" rel=\"noopener\">Notification No. 07\/2026-Central Tax<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"gst-3\">Reverse charge on scrap and e-waste bought from unregistered persons<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Notification No. 04\/2026-Central Tax (Rate) dated 27 October 2026, issued under section 9(3), inserts new entries 2A, 3B, 3C and 9 in Notification No. 4\/2017-Central Tax (Rate): used cooking oil (1518), waste and scrap of plastics (3915), waste and scrap of tyres (4004) and electrical and electronics waste and scrap (8549), where the supplier is any unregistered person and the recipient is any registered person. It applies from 1 November 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action:<\/strong> Registered businesses buying these goods from unregistered suppliers should set up reverse-charge payment and self-invoicing from 1 November 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Official source:<\/strong> <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1010801\/ENG\/Notifications\" target=\"_blank\" rel=\"noopener\">Notification No. 04\/2026-Central Tax (Rate)<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"gst-4\">Hotels, restaurants, catering, EV transport and delivery services: rate entries revised<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Notification No. 06\/2026-Central Tax (Rate) dated 27 October 2026 amends Notification No. 11\/2017-Central Tax (Rate) from 1 November 2026. For hotel accommodation, restaurant, outdoor catering and train\/platform food entries (S. No. 7), the ITC condition now allows credit of input services in the same line of business; where that supplier charges central tax above 2.5%, credit beyond 2.5% cannot be taken. New entries cover transport of passengers by, and renting of, electrically operated vehicles where battery charging cost is included (2.5% with the stated ITC conditions, or 9%), and the delivery services entry for supplies through e-commerce operators (S. No. 12, item (iii)) is substituted. &#8220;Electrically operated vehicle&#8221; is defined to include e-bicycles, and the definition of &#8220;goods transport agency&#8221; is substituted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action:<\/strong> Hotels, caterers, EV fleet and rental operators and delivery platforms should review their invoicing and ITC from 1 November 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Official source:<\/strong> <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1010783\/ENG\/Notifications\" target=\"_blank\" rel=\"noopener\">Notification No. 06\/2026-Central Tax (Rate)<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Detailed explainer:<\/strong> <a href=\"https:\/\/www.taxaj.com\/learn\/gst-2-0-57th-council-reforms\/\" target=\"_blank\" rel=\"noopener\">57th GST Council Meeting Recommendations: What Is Live and What Is Pending<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"gst-5\">New and revised service exemptions<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Notification No. 07\/2026-Central Tax (Rate) dated 27 October 2026 amends exemption Notification No. 12\/2017-Central Tax (Rate) from 1 November 2026. It adds helicopter travel on seat-share basis to or from airports and helipads in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura or Bagdogra (West Bengal); substitutes S. No. 24B to cover storage or warehousing of cereals, pulses, fruits, vegetables and seeds meant for sowing; and inserts Nil entries for services of the Seamen&#8217;s Provident Fund Organisation (31AA), grant of toll rights by government bodies (42A) and curing of coffee supplied to coffee cultivators (54A). The GTA entry 21A no longer applies to goods supplied through an e-commerce operator, and &#8220;seed&#8221; is defined.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action:<\/strong> Businesses in these sectors should check whether a supply becomes exempt, or stops being exempt, from 1 November 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Official source:<\/strong> <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1010784\/ENG\/Notifications\" target=\"_blank\" rel=\"noopener\">Notification No. 07\/2026-Central Tax (Rate)<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Detailed explainer:<\/strong> <a href=\"https:\/\/www.taxaj.com\/learn\/gst-2-0-57th-council-reforms\/\" target=\"_blank\" rel=\"noopener\">57th GST Council Meeting Recommendations: What Is Live and What Is Pending<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"gst-6\">Reverse charge entry 15 and e-commerce delivery services amended<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Notification No. 08\/2026-Central Tax (Rate) dated 27 October 2026, under section 9(3), substitutes the figure &#8220;9&#8221; for &#8220;6&#8221; in column (3) against serial number 15 of Notification No. 13\/2017-Central Tax (Rate). Notification No. 09\/2026-Central Tax (Rate), under section 9(5), substitutes clause (v) of Notification No. 17\/2017-Central Tax (Rate) to read &#8220;Delivery services, other than postal and courier services, except where the person supplying such services through electronic commerce operator is liable for registration under sub-section (1) of section 22&#8221;. Both apply from 1 November 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action:<\/strong> Recipients under reverse-charge entry 15 and e-commerce operators handling delivery services should update their tax set-up from 1 November 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Official source:<\/strong> <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1010785\/ENG\/Notifications\" target=\"_blank\" rel=\"noopener\">Notification No. 08\/2026-Central Tax (Rate)<\/a> and <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1010786\/ENG\/Notifications\" target=\"_blank\" rel=\"noopener\">Notification No. 09\/2026-Central Tax (Rate)<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"gst-7\">Goods: bio-stimulants, retreaded tractor tyres, psyllium seeds and &#8220;Nominated Agency&#8221;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Three notifications dated 27 October 2026 apply from 1 November 2026. Notification No. 02\/2026-Central Tax (Rate) amends Notification No. 9\/2025-Central Tax (Rate): S. No. 237 of Schedule I (2.5%) now includes sea-weed extract based bio-stimulants registered under Schedule VI to the Fertiliser (Control) Order, 1985; retreaded tractor tyres (4012) are added as S. No. 272A of Schedule I; and S. No. 138 of Schedule II (9%) excludes them. Notification No. 03\/2026-Central Tax (Rate) inserts S. No. 87A, psyllium seeds (Isobgul\/Isobgol, 1211 90 13), in exemption Notification No. 10\/2025-Central Tax (Rate). Notification No. 05\/2026-Central Tax (Rate) redefines &#8220;Nominated Agency&#8221; in Notification No. 26\/2018-Central Tax (Rate) as entities in Appendix 4B of the Handbook of Procedures, as amended by DGFT.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action:<\/strong> Manufacturers and traders of these goods should update item tax codes in their billing software before 1 November 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Official source:<\/strong> <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1010799\/ENG\/Notifications\" target=\"_blank\" rel=\"noopener\">Notification No. 02\/2026-CT(R)<\/a>, <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1010800\/ENG\/Notifications\" target=\"_blank\" rel=\"noopener\">03\/2026-CT(R)<\/a> and <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1010802\/ENG\/Notifications\" target=\"_blank\" rel=\"noopener\">05\/2026-CT(R)<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Detailed explainer:<\/strong> <a href=\"https:\/\/www.taxaj.com\/learn\/gst-2-0-57th-council-reforms\/\" target=\"_blank\" rel=\"noopener\">57th GST Council Meeting Recommendations: What Is Live and What Is Pending<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"gst-8\">Special procedure for Toll-Operate-Transfer road maintenance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Notification No. 10\/2026-Central Tax (Rate) dated 27 October 2026, issued under section 148, notifies concessionaires under a Toll-Operate-Transfer concession agreement who supply operation and maintenance services to the concessioning authority. They shall pay central tax on the amount charged or debited from the Escrow Account towards operation and maintenance expenses, in the tax period in which it is so charged or debited. It applies from 1 November 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action:<\/strong> TOT road concessionaires should align their tax payment with escrow debits from 1 November 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Official source:<\/strong> <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1010787\/ENG\/Notifications\" target=\"_blank\" rel=\"noopener\">Notification No. 10\/2026-Central Tax (Rate)<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"gst-9\">Circular 265: sublimation paper, toys, used-car margin scheme and bio-stimulants<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">CBIC Circular No. 265\/11\/2026-GST dated 28 October 2026 clarifies that sublimation paper falls under heading 4809 at 18%; that the toy entries (S. No. 497 of Schedule I and S. No. 616 of Schedule II of Notification 09\/2025-CT(R)) cover all toys under heading 9503, not only tricycles, scooters and pedal cars; that dealers in old and used motor vehicles under the margin scheme may take ITC on inputs (other than the vehicles) and input services; and that registered sea-weed extract based bio-stimulants fall under heading 3101. The past period for sublimation paper and bio-stimulants is regularised on an &#8220;as is where is&#8221; basis.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action:<\/strong> Used-car dealers, toy sellers and these manufacturers should review past classification and ITC positions against this circular.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Official source:<\/strong> <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1003357\/ENG\/Circulars\" target=\"_blank\" rel=\"noopener\">Circular No. 265\/11\/2026-GST<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Detailed explainer:<\/strong> <a href=\"https:\/\/www.taxaj.com\/learn\/gst-2-0-57th-council-reforms\/\" target=\"_blank\" rel=\"noopener\">57th GST Council Meeting Recommendations: What Is Live and What Is Pending<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"gst-10\">Circular 266: R&amp;D grants, shipping, vehicle leasing, TRAI, bank FTP and NBFC co-lending<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">CBIC Circular No. 266\/12\/2026-GST dated 28 October 2026 clarifies six service issues. A certificate from the head of the notified institution that the activity is R&amp;D and not consultancy may suffice to claim the Entry 44A exemption. GST on import of services by an Indian establishment of a foreign shipping company from a related person without consideration is regularised for 1 July 2017 to 31 October 2026 on an &#8220;as is where is&#8221; basis. Registration, insurance, FASTag and similar recoveries in motor vehicle leasing form part of the leasing supply. TRAI is not &#8220;Government&#8221; under section 2(53). Notional interest under banks&#8217; Fund Transfer Pricing is &#8220;interest&#8221; for the exemption. Lending services by an NBFC to a bank under co-lending are taxable at the contract value.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action:<\/strong> Lessors, banks, NBFCs in co-lending and research institutions should check their GST treatment against this circular.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Official source:<\/strong> <a href=\"https:\/\/taxinformation.cbic.gov.in\/view-pdf\/1003358\/ENG\/Circulars\" target=\"_blank\" rel=\"noopener\">Circular No. 266\/12\/2026-GST<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.taxaj.com\/daily-tax-compliance-updates\" target=\"_blank\" rel=\"noopener\">All daily digests<\/a> \u00b7 Topic pages: <a href=\"https:\/\/www.taxaj.com\/income-tax-news\" target=\"_blank\" rel=\"noopener\">Income tax news<\/a> \u00b7 <a href=\"https:\/\/www.taxaj.com\/gst-news-and-announcements\" target=\"_blank\" rel=\"noopener\">GST news and announcements<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/bookings.taxaj.com\/\" target=\"_blank\" rel=\"noopener\">Talk to our team<\/a><\/div>\n<\/div>\n\n\n\n<p class=\"has-small-font-size wp-block-paragraph\"><em>Compiled from official sources linked above. Last updated 31 October 2026. This is general information, not advice on any particular case.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>GST changes from 1 November 2026 for scrap and e-waste (registration, TDS, reverse charge), hotel, catering and EV ITC rules, new exemptions, CBIC Circulars 265 and 266, and CBDT Notification 138\/2026 on IRRI.<\/p>\n","protected":false},"author":1,"featured_media":90983,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[985,13],"tags":[],"class_list":["post-90984","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-updates","category-news-updates"],"_links":{"self":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/90984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/comments?post=90984"}],"version-history":[{"count":0,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/90984\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media\/90983"}],"wp:attachment":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media?parent=90984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/categories?post=90984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/tags?post=90984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}