GST Updates

PORTAL UPGRADE  |  GSTN  |  ADVISORY 20 MAY 2026  |  LIVE BY 15 JUN 2026

e-Way Bill Portal Gets a Material Upgrade: "Ship-To GSTIN" Becomes Mandatory and a New EWB Closure Facility Is Introduced

GSTN has issued an advisory dated 20 May 2026 announcing two material enhancements to the e-Way Bill (EWB) portal, both of which will be deployed in production by 15 June 2026. The first change makes the capture of "Ship-To GSTIN" mandatory at EWB generation in every Bill-To / Ship-To transaction where the consignee location differs from the billing party. Where the actual consignee is an unregistered person, the field must be populated with the literal value "URP". The objective is to fix a long-standing traceability gap where consignment-tracking has often relied on the bill-to party even when goods physically moved to a different GSTIN. ERP vendors, GSPs, ASPs, and system integrators have been advised to update their API call patterns and field-mapping logic before the cut-over date.

The second enhancement introduces a voluntary e-Way Bill Closure facility that allows the supplier, the recipient, the transporter, the driver, or any authorised person to close an EWB after the goods have been delivered. Closure can be initiated EWB-wise or date-wise, and is operable through both the web portal and a mobile-number-based mobile workflow with API support. The closure capability is significant because it resolves the operational ambiguity of stale or unrevoked EWBs that have historically created data-quality issues in compliance monitoring. The mobile-based closure path also reduces the dependency on full portal access for transporters and drivers on the move. GSTN has released updated API specifications and technical documentation alongside the advisory, and all stakeholders are expected to align their systems before 15 June 2026.

Source: TaxGuru — GSTN Advisory on Enhancements in e-Way Bill Portal (20 May 2026)

REFUND PROCESS  |  GSTN  |  ADVISORY 18 MAY 2026

Annexure-B Goes from PDF to Excel: Refund Applications for Accumulated ITC Now Run on a Standardised Offline Utility

In a separate advisory dated 18 May 2026, GSTN has introduced a standardised Annexure-B Offline Utility in Excel format for refund applications involving accumulated Input Tax Credit. Until now, taxpayers filing refunds under categories such as exports without payment of tax, SEZ supplies, inverted duty structure claims, and export of electricity were required to upload Annexure-B as a PDF document, which then went through manual scrutiny at the proper officer's end. The new Excel-based utility automates invoice-level verification at the upload stage and substantially reduces the back-and-forth that has historically delayed refund release. Taxpayers will now need to report inward supply details HSN/SAC-wise, with each invoice segregated by input category: Inputs, Input Services, and Capital Goods.

The utility introduces stricter validation mechanisms at the entry stage. Every invoice line item must include the supplier GSTIN, invoice number, invoice date, category of supply, and the HSN/SAC details, and validation failures are flagged before submission rather than discovered weeks later during officer review. The shift to Excel also means that taxpayers and their consultants can build their working papers directly in the same format the portal will accept, eliminating the conversion step that earlier produced format mismatches. For inverted duty structure refund claimants in particular, where ITC has been piling up since the GST 2.0 rate adjustments came into force on 1 April 2026, this is the most operationally significant change to the refund mechanism this fiscal. Practitioners should run their pending Annexure-B submissions through the new utility template before the next batch of refund applications is filed.

Source: Legality Simplified — GSTN Introduces E-Way Bill & Refund Filing Enhancements (18 / 21 May 2026)

RBI & Financial Sector

FX & MARKETS  |  RBI  |  19 – 23 MAY 2026

Rupee Hits All-Time Low of ₹96.96 Before Recovering: RBI Steps In With a $5 Billion USD/INR Swap, but Long-Term Pressure Remains

The Indian rupee fell to a fresh all-time low of approximately ₹96.96 per US dollar on 20 May 2026, capping a week of sustained weakness driven by elevated crude oil prices, FPI outflows from Indian equities, and broad dollar strength. The RBI's reference rate, published by the central bank itself, recorded an intraday low of ₹96.844 on 20 May. Aggressive RBI intervention followed: a $5 billion USD/INR buy-sell swap was executed to calm spot-market volatility, alongside dollar sales by state-run banks acting on RBI's behalf. By Friday's close on 22 May, the rupee had recovered to ₹95.96, and traders quoted the unit around ₹95.70 on 23 May. Forward premia widened meaningfully through the week, indicating heightened hedging demand from importers and external borrowers.

The episode is a stress test of the RBI's "neutral stance with operational flexibility" approach. At the April MPC, the Committee held the repo rate at 5.25% and explicitly flagged West Asia supply-chain risks; that risk has now translated into measurable currency stress. For Indian businesses, the practical implications run on three tracks. Importers and external commercial borrowers face higher landed costs and higher INR-equivalent repayment obligations; ECB hedging policies should be reviewed in light of the wider forwards. Exporters get a tactical tailwind but should not over-hedge into receivables at current spot if a further leg of weakness is on the table. Treasury and CFO functions should monitor the implications for FY27 advance tax estimation, particularly where unrealised FX gains or losses interact with Section 43AA of the Income Tax Act, 1961 for FY 2025-26 closing balances. Economists at HDFC Securities and IDFC First quoted in market commentary have flagged a "perfect storm" scenario where, if crude crosses $130, FPI outflows accelerate, and the dollar index extends gains, the rupee could probe the ₹100 level later in the year. The base case at present remains a band of ₹94 to ₹97 through the third quarter, with active RBI smoothing.

Sources: NewsX — Rupee vs Dollar Drama (23 May 2026)  |  CEIC — RBI Reference Rate USD/INR (22 May 2026)

Income Tax Updates

FILING SEASON  |  CBDT  |  AY 2026-27 STATUS

ITR-2 and ITR-3 Utilities for AY 2026-27 Still Pending: What Has Changed in the Notified Forms, and Why Filers With Capital Gains Should Get Working Papers Ready Now

Two weeks after the ITR-1 and ITR-4 utilities went live on 15 May 2026, the ITR-2 and ITR-3 Excel utilities and online filing modes for AY 2026-27 remain unenabled on the e-filing portal. For AY 2025-26, the equivalent forms were released only on 18 July 2025 and the original due date was subsequently extended; the same risk window is now in play. Filers who fall outside the ITR-1 / ITR-4 scope, namely those with capital gains, more than one house property, foreign assets, cryptocurrency or virtual digital asset income, or income as a director / unlisted shareholder, should treat the next four to six weeks as preparation time rather than passive waiting time. Working papers built ahead of the utility release substantially reduce the late-July compression that has historically caused portal slowdowns and last-day filing failures.

Several substantive changes in the notified AY 2026-27 forms deserve advance attention. Capital gains rates remain segregated by 23 July 2024 across all relevant ITR forms, since the revised Section 112A / 111A rates introduced through Finance Act 2024 apply only to transfers on or after that date. Gains from unlisted bonds and debentures continue to be classified as short-term capital gains regardless of holding period for transfers on or after 23 July 2024. Three administrative simplifications also feature in the new forms: taxpayers can furnish both primary and secondary mobile numbers and email addresses, and similarly both primary and secondary addresses; representative-assessee filings have been simplified to capture only the name, contact number, and email ID of the representative, with the earlier requirements of representative PAN, address, and capacity removed; and income from notified and non-notified foreign retirement benefit accounts under Section 89A has been removed from ITR-1 and ITR-4, requiring affected taxpayers to file ITR-2 or ITR-3 instead. The deadline for non-audit filers is 31 July 2026.

Sources: EZTax — New ITR Forms Released for AY 2026-27: What Has Changed  |  ClearTax — ITR-2 AY 2026-27: New Changes, Who Can File, Due Date

Importance & Applicability

Who each update applies to, why it matters, and the action it triggers.

INDIRECT TAX e-Way Bill portal: Ship-To GSTIN mandatory and EWB Closure facility	APPLIES TO All GSTINs raising e-Way Bills, especially distributors and consignment-mode businesses with Bill-To / Ship-To transactions. ERP vendors, GSPs, ASPs, transporters, drivers, and authorised users.	WHY IT MATTERS Update ERP / EWB workflow by 15 Jun 2026. Use "URP" for unregistered consignees. Mobile / API-based closure resolves stale-EWB compliance risk. Test new API specifications before cutover.
INDIRECT TAX Annexure-B Excel Offline Utility for ITC refund claims	APPLIES TO Exporters (with and without payment of tax), SEZ suppliers, inverted duty structure claimants (textiles, EV, fertilisers especially), and electricity exporters claiming accumulated ITC refund.	WHY IT MATTERS Validation now happens at upload, not weeks later. Reduces refund release lag. Map invoices HSN/SAC-wise across Inputs, Input Services, Capital Goods. Use the new template for next refund batch.
BANKING & FINANCE Rupee at ₹96.96 record low; RBI $5 bn swap	APPLIES TO Importers, exporters, external commercial borrowers, fintech remittance platforms, LRS users, treasury / CFO functions managing FX exposure, and any business with USD-linked revenues or costs.	WHY IT MATTERS Review ECB hedging in light of widened forwards. Reassess FY27 advance tax estimates where Sec 43AA FX gains/losses are material. Base case Q3 band ₹94 to ₹97; tail risk towards ₹100 if oil and FPI worsen.
DIRECT TAX ITR-2 / ITR-3 utilities still pending for AY 2026-27	APPLIES TO Individuals and HUFs with capital gains, more than one house property, foreign assets, crypto / VDA income, directors / unlisted shareholders, or business and professional income from non-presumptive sources.	WHY IT MATTERS Build working papers now. Capital gains split by 23 Jul 2024 remains. Foreign retirement income (Sec 89A) shifts filers from ITR-1/4 to ITR-2/3. Representative-assessee filing simplified. Deadline 31 Jul 2026.

KEY COMPLIANCE DEADLINES — MAY TO AUGUST 2026

30 MAY 2026 — SIX DAYS AWAY LLP Form 11 Annual Return for FY 2025-26. Form 164 under Sec 507 IT Act 2025 for film, OTT, sports, and event producers (Tax Year 2025-26).	31 MAY 2026 TDS Return Q4 FY 2025-26 (Forms 24Q, 26Q, 27Q, 27EQ) under IT Act, 1961. Form 15CC for authorised dealers (FEMA remittances Q4).
15 JUN 2026 e-Way Bill portal upgrade goes live: Ship-To GSTIN mandatory, EWB Closure facility enabled. First instalment of advance tax for AY 2027-28.	15 JUN 2026 (CONT.) Form 16 issuance deadline for salaried employees under Rule 31 (FY 2025-26). Salaried filers should wait for Form 16 before filing ITR.
30 JUN 2026 Form DPT-3 (Return of Deposits) for FY 2025-26. Triennial DIR-3 KYC Web filing under Rule 12A(1). DIN deactivation otherwise.	1 JUL 2026 Unregistered Type I NBFC framework live. PRAVAAH portal deregistration window opens for eligible NBFCs (closes 31 Dec 2026).
15 JUL 2026 CCFS-2026 amnesty window closes. Last day to file pending ROC returns at 10% of additional fee. No extension expected.	31 JUL 2026 ITR-1, ITR-2, ITR-3, ITR-4 for AY 2026-27 (non-audit cases). DIR-3 KYC late window. Final cut for individual filers.

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This bulletin is for general information only and does not constitute legal, tax, or financial advice.
Please verify with primary sources and consult your CA or advisor before acting.