August & September 2026, Knowledge Update
August & September 2026 Knowledge Update | Monthly Newsletter
At our firm, we believe that timely knowledge sharing is as important as timely compliance. During the month of August & Septdember 2026, we published a series of practical articles covering important updates. These write-ups are designed to simplify complex provisions and help businesses, professionals, and taxpayers stay informed in a changing regulatory environment.
Below, you will find a summary of all articles published on our website during August & September, 2026. To read any topic in detail, you may click on the respective link provided in the newsletter.
Highlights of August & Sepember, 2026 Articles
GST KNOWLEDGE HUB
1.Seller Fails to Deposit GST : Can the Buyer Be Denied Input Tax Credit?
A supplier’s GST default can now directly affect the buyer’s ITC position. The Supreme Court, in Bhandari Scrap Traders, affirmed the Gujarat High Court’s view that Section 16(2)(c) of the CGST Act is valid and tax payment to the Government remains a condition for ITC. A genuine transaction, valid invoice, receipt of goods, supplier reporting and payment to the supplier do not automatically guarantee permanent credit. However, individual disputes on fraud, genuineness, interest and penalties remain open. Businesses should strengthen vendor due diligence, contractual safeguards, reconciliation and ITC monitoring to manage supplier-default risks effectively.
https://www.aagamshahca.com/news-detail/section-16-2c-gst-itc-supplier-default-s
2.Are Research Fees Received by a Doctor Exempt from GST?
A doctor’s profession does not automatically make every service GST-exempt. Patient diagnosis, treatment and care may qualify for exemption, but research papers, clinical trials, scientific consultancy, data analysis and other research deliverables are generally taxable. This distinction becomes crucial when doctors receive fees from hospitals, pharmaceutical companies or CROs. Tax treatment can also affect GST registration because exempt healthcare receipts count towards aggregate turnover when taxable services are added. Businesses and professionals should review contracts, deliverables, invoices and turnover carefully before raising bills. Correct classification can prevent unexpected GST liability, registration issues and compliance risks.
https://www.aagamshahca.com/news-detail/gst-research-fees-doctors
3.Gujarat High Court Upholds GST on Corporate Guarantees but Restricts Its Valuation and Retrospective Application
Corporate guarantees can create a GST liability even without any commission. But how that liability is valued and enforced has now changed significantly. The Gujarat High Court held that corporate guarantees between related companies can qualify as taxable supplies, while restricting Rule 28(2) for periods before 26 October 2023. The Court also read down “whichever is higher,” recognised actual ascertainable commission, and quashed Section 74 proceedings where fraud or wilful suppression was not established. Businesses with existing, continuing, or historical guarantees should review their GST treatment, valuation, documentation, and past payments carefully.
https://www.aagamshahca.com/news-detail/gst-on-corporate-guarantees-rule-28-2-gu
4.Supreme Court Quashes Section 74 GST Notice : Fraud Cannot Be a Mere Label
Fraud cannot be a mere label to extend GST limitation. The Supreme Court, in G.R. Infra Projects Limited, set aside a Section 74 show cause notice for FY 2018-19, where the department relied on broad references to fraud and concealment without clearly explaining the alleged conduct. The Court emphasised that fraud, wilful misstatement or suppression must be specifically established in the notice itself. A later counter-affidavit cannot cure an inadequate SCN or revive an otherwise time-barred demand. Taxpayers and professionals should carefully review Section 74 notices, limitation periods and the factual basis supporting extended proceedings before responding.
https://www.aagamshahca.com/news-detail/Supreme-Court-Quashes-Section-74
5.Enabling Filing of Appeals in Cases Involving NIL or Zero Demand Amount
A NIL or Zero GST demand no longer means an appeal is blocked. GSTN’s 7 September 2026 advisory removes the earlier portal restriction for taxpayers disputing liability where the amount was paid before the demand order. Eligible taxpayers can now file Form GST APL-01 even when the order reflects no outstanding demand. This is important for businesses that paid disputed amounts but were unable to challenge the liability through the portal. Taxpayers should review orders, payment records, grounds of appeal and timelines promptly. If filing issues continue, raise a ticket with the GST Helpdesk.
https://www.aagamshahca.com/news-detail/gst-appeal-nil-zero-demand
6.Audit and Beyond: Is Your Business Merely Compliant or Actually Under Control?
Compliance should do more than close a deadline; it should strengthen the business. Filing GST returns, completing audits and finalizing accounts do not mean risks are controlled. A GST Health Check can uncover missed ITC, mismatches, RCM exposure, documentation gaps and notice risks. Beyond compliance, internal audit and financial reviews can reveal blocked working capital, rising receivables, excess inventory, unnecessary costs and declining margins. Business owners should use financial data to understand what is happening, why and what needs action. Regular monthly reconciliations, KPIs and management reviews can turn compliance into real business improvement.
https://www.aagamshahca.com/news-detail/Audit-and-Beyond-Is-Your-Business-Merely
CORPORATE KNOWLEDGE HUB
1.MCA Extends Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) Up to 15 September, 2026
CCFS-2026 gets another extension, giving companies an opportunity to regularise eligible pending statutory filings. MCA General Circular No. 04/2026, dated 31 August 2026, extends the scheme’s validity until 15 September 2026. This is the second extension since the scheme was introduced on 24 February 2026. Importantly, only the validity period has changed; all other eligibility conditions, terms and benefits remain unchanged. Companies with pending eligible filings should use this window to review outstanding compliances, complete filings and avoid missing the revised deadline. Professionals should reassess pending client matters and prioritise submissions under the scheme.
https://www.aagamshahca.com/news-detail/ccfs-2026-extension-15-september-2026
OTHER KNOWLEDGE HUB
1.MSMED Act Amendment Bill 2026 Passed by Parliament : Key Changes for MSMEs
MSME compliance is changing, and businesses dealing with MSMEs need to take notice. The MSMED Amendment Bill 2026 introduces stronger delayed-payment recovery, faster dispute resolution, expanded MSE Facilitation Council mechanisms and greater use of TReDS for invoice settlement. It also recognises Udyam Registration as a permanent platform and moves compliance offences towards warnings and graded civil penalties. For MSMEs, the changes could improve payment recovery and liquidity. For buyers, stronger payment, disclosure and compliance processes may become important. Businesses should review vendor records, payment timelines, contracts and MSME disclosures to prepare for the framework.
https://www.aagamshahca.com/news-detail/msmed-act-amendment-bill-2026
2.EPF Wage Ceiling Increased from Rs.15,000 to Rs.25,000 : What Changes for Employees and Employers?
PF coverage is expanding, and payroll teams need to act now. From 17 September 2026, the statutory EPF wage ceiling has increased from Rs.15,000 to Rs.25,000 per month, potentially bringing more employees under compulsory coverage. However, this does not mean every employee’s PF deduction automatically becomes Rs.3,000. The actual impact depends on PF wages, existing membership, EPS status and salary structure. Employees may see retirement savings but lower take-home pay, while employers may face increased contribution costs and compliance changes. Businesses should review employee records, payroll settings and September’s split-period calculation before finalising compliance.
https://www.aagamshahca.com/news-detail/epf-wage-ceiling-25000-new-pf-rules-2026
Disclaimer : This article is for informational purposes only and should not be construed as legal or professional advice. Taxpayers should consult their tax advisor based on the facts of their specific case before taking any action.
