RTS Professional Study

📢 Important Update for MSMEs – MSMED Amendment Bill, 2026

The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 has been passed by Parliament. The key changes are:

🔹 Udyam Registration – Udyam Registration Portal gets statutory recognition as a free, digital and voluntary registration platform.

🔹 MSME Classification – Classification will be based on both Investment + Turnover.

🔹 Delayed Payment Protection – Stronger mechanism for recovery of dues from buyers.

🔹 Online Dispute Resolution (ODR) – Online mechanism introduced for faster and cost-effective resolution of MSE payment disputes.

🔹 Time-bound Proceedings ➡️ Mediation – within 90 days ➡️ Arbitration referral – within 30 days ➡️ Award – within 90 days from completion of pleadings

🔹 50% Payment Protection – If a challenge to an award/order remains pending for more than 6 months, the court must order payment of at least 50% of the awarded amount to the MSE supplier.

🔹 Recovery of Awards – Mediated settlements and arbitral awards can be recovered as arrears of land revenue.

🔹 TReDS – CPSEs will route settlement of MSME invoices through TReDS, helping MSMEs get faster liquidity.

🔹 More MSEFCs – States can establish multiple Facilitation Councils for faster disposal of delayed-payment cases.

🔹 Decriminalisation – Several offences have been replaced with graded civil penalties, promoting Ease of Doing Business.

📌 Overall Impact: The amendment aims to provide faster payment recovery, easier compliance, better liquidity and stronger legal protection for MSMEs.

Source: Ministry of MSME / PIB, 7 August 2026

1 week ago | [YT] | 1

RTS Professional Study

Lok Sabha Passes Bill Allowing Government to Permit Charges on UPI Transactions: What It Means for Consumers and Businesses

New Delhi, August 2026: A significant change has been proposed in India's digital payment ecosystem. The Lok Sabha has passed the Taxation and Other Laws (Amendment) Bill, 2026, which includes an amendment to the Payment and Settlement Systems Act, 2007. The amendment enables the Central Government to permit banks and other payment service providers to levy charges on certain electronic payment transactions, including transactions made through the Unified Payments Interface (UPI).

The development has triggered questions among millions of UPI users: Will UPI payments become chargeable? Will customers have to pay for every UPI transaction? What is MDR?

The answer is that no immediate charge has been imposed on UPI users merely because the Bill has been passed. The amendment essentially removes an existing legal restriction and provides the government with the power to allow such charges in the future.

What Has Changed?

UPI has become one of India's most widely used digital payment systems, allowing individuals and businesses to transfer money instantly through bank accounts.

Under the existing framework, UPI transactions have generally operated without a Merchant Discount Rate (MDR), particularly to encourage the adoption of digital payments.

The amendment to the Payment and Settlement Systems Act, 2007, changes this legal position. It gives the Central Government the authority to permit banks and payment service providers to levy charges on UPI and other notified electronic payment modes.

However, the Bill itself does not specify a particular UPI charge or announce a new fee payable by customers from a particular date.

What Is MDR?

One of the most important terms in this discussion is Merchant Discount Rate (MDR).

MDR is a fee associated with processing digital payments. In a typical card or digital payment transaction, the merchant-side payment ecosystem may involve banks, payment networks and payment service providers, with the applicable fee distributed among participants according to the relevant arrangement.

Therefore, if MDR is permitted for UPI transactions, it does not automatically mean that an individual will have to pay a fee every time they scan a QR code.

The exact structure—including who will bear the charge, what rate will apply and which transactions will be covered—would depend on subsequent government rules or notifications.

Will Customers Have to Pay for UPI?

Not at present.

The passage of the Bill should not be interpreted as an immediate introduction of a UPI transaction fee for consumers.

Finance Minister Nirmala Sitharaman has clarified that concerns about consumers being directly charged should not be confused with the possibility of introducing MDR. Reports indicate that any proposed MDR would be directed towards merchants rather than consumers.

The Payments Council of India has also stated that UPI transactions will remain free for consumers, while also addressing concerns relating to small merchants.

Therefore, users should distinguish between:

Legal permission to introduce charges ≠ immediate charging of UPI users.

Why Has the Government Made This Change?

UPI has grown enormously and has created a large digital payment ecosystem involving banks, payment service providers, fintech companies and other participants.

The payment ecosystem incurs costs for maintaining infrastructure, processing transactions, preventing fraud and providing payment services.

The amendment could potentially provide greater flexibility to develop a sustainable commercial model for digital payment services.

At the same time, the government has to balance this against its objective of keeping digital payments affordable and encouraging wider UPI adoption.

What Could Be the Impact on Merchants?

The biggest question for businesses is whether they could eventually face transaction charges.

If the government subsequently permits MDR on certain UPI transactions, businesses could potentially become the party bearing the transaction cost.

However, it is too early to conclude that every merchant will have to pay a fixed percentage on every UPI transaction.

The government would need to specify the applicable framework, including the transactions covered, rate structure, exemptions and other conditions.

Small merchants and low-value transactions could receive special treatment depending on the final policy.

What About Person-to-Person UPI Payments?

Another important distinction is between person-to-person (P2P) and person-to-merchant (P2M) payments.

For example:

Sending ₹1,000 to a friend is a P2P transaction.

Paying ₹1,000 to a shopkeeper through a QR code is generally a P2M transaction.

The mere passage of the Bill does not mean that a charge has now been imposed on either category.

The detailed rules will determine which electronic payment transactions, if any, become chargeable.

Why Is This News Important?

India has strongly promoted digital payments over the last several years. UPI has played a major role in this transformation by making instant bank-to-bank payments simple and accessible.

Any change in the cost structure of UPI could therefore affect:

Consumers

Retailers

E-commerce businesses

Small merchants

Banks

Fintech companies

Payment service providers

The government will have to ensure that any new fee mechanism does not discourage consumers and small businesses from using digital payments.

UPI Charges: What Users Should Know

At this stage, users should remember five key points:

1. UPI charges have not been immediately imposed on consumers.

2. The Lok Sabha has passed legislation that enables the government to permit charges under the payment-system framework.

3. MDR is different from a mandatory fee charged directly to every UPI user.

4. The actual rate, applicability and payer would depend on subsequent government decisions and regulations.

5. Consumers should wait for an official notification before assuming that UPI payments will become chargeable.

Conclusion

The Lok Sabha's passage of the Bill represents an important potential change in India's digital payment regulatory framework. The amendment gives the Central Government greater authority to permit banks and payment service providers to levy charges on UPI and other specified electronic payment transactions.

However, UPI is not suddenly becoming a paid service for consumers merely because the Bill has been passed.

The next important development will be the government's decision on whether to actually permit such charges and, if so, which transactions will attract charges, who will pay them and at what rate.

For now, UPI users can continue to use the payment system without assuming that a new transaction fee has already been introduced.

1 week ago | [YT] | 3

RTS Professional Study

New GST Portal Update: Email ID Mandatory to Access TRN

The GST Portal has recently introduced an important update. Now, providing an email ID has been made mandatory to access the TRN (Temporary Reference Number).

This change has been introduced to enhance security, ensure user identification, and prevent unauthorized access to TRNs.

Earlier, the TRN could be accessed directly through the GST Portal. However, under the new process, the TRN will not be accessible unless a valid email ID is provided.

Taxpayers are advised to ensure that their registered email ID is updated and active on the GST Portal to avoid any difficulties while accessing their TRN or completing the GST registration process.

Tax professionals should also inform their clients about this new requirement and ensure that all necessary contact details, particularly the email ID, are correctly provided in advance. This will help ensure that the GST registration and return filing processes are completed smoothly without unnecessary interruptions.

As this update is currently active, all GST users are advised to verify their email details before proceeding with the TRN-related process on the GST Portal.

1 week ago | [YT] | 1

RTS Professional Study

Bharat Connect Release 1.2 on TallyPrime
Business doesn't always end with sending an invoice.

What's new in Release 1.2
You can now:
• Share credit notes with buyers in bulk via Bharat Connect and e-mail
• Create vouchers in TallyPrime against received credit notes
• Send payment adjustments using applicable credit notes
• Track issued credit notes through the Supplier Activities reports
• Create receipts with credit note adjustments and share payment

4 weeks ago | [YT] | 3

RTS Professional Study

Summary of Notification dated 30 June 2026

Issued by: Government of India, Ministry of Finance, Department of Revenue
Under: Section 112(1) read with Section 112(3) of the CGST Act, 2017

The Central Government has issued this notification superseding Notification No. S.O. 4220(E) dated 17 September 2025. Based on the recommendations of the GST Council, the notification prescribes the last date for filing appeals/applications before the GST Appellate Tribunal (GSTAT) under Section 112 of the CGST Act.

Key Provisions
Last date for filing appeals in old cases
31 July 2026 has been notified as the last date for filing appeals/applications before the GST Appellate Tribunal in respect of orders:
Communicated before 1 May 2026, or
Passed before 1 February 2026, as applicable under Section 112.
Orders communicated on or after 1 May 2026
Where the order sought to be appealed is communicated on or after 1 May 2026, the appeal shall be filed within three months from the date of communication of the order, in accordance with Section 112(1) of the CGST Act.
Applications against orders passed on or after 1 February 2026
Applications under Section 112(3) relating to orders passed on or after 1 February 2026 must be filed within six months from the date of the order.
Practical Effect
Taxpayers who received appealable orders before 1 May 2026 now have a final opportunity up to 31 July 2026 to file appeals before the GST Appellate Tribunal.
For new orders communicated on or after 1 May 2026, the normal statutory limitation of three months applies.
For applications under Section 112(3) relating to orders passed on or after 1 February 2026, the limitation period is six months from the date of the order.

Notification Date: 30 June 2026
Effective for GSTAT appeals: Last extended date for eligible pending appeals is 31 July 2026.

1 month ago | [YT] | 3

RTS Professional Study

Government Notifies 31 July 2026 as Extended Due Date for Filing GSTAT Appeals and Applications under CGST Act

1 month ago | [YT] | 11

RTS Professional Study

Had an insightful discussion with GST professionals on the upcoming e-Way Bill changes. The session covered the latest amendments, practical compliance challenges, implementation aspects, and their impact on taxpayers and practitioners. It was a valuable exchange of knowledge and practical perspectives on the evolving GST framework.

#GST #ewaybill

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2 months ago | [YT] | 20

RTS Professional Study

🏆 *It's Time to Share Your Story.*

If your business has created jobs, driven innovation, or made a positive impact, this is your opportunity to be recognised.

*Tally MSME Honours 2026* , now in its 6th edition, celebrates inspiring MSMEs that are shaping growth and entrepreneurship.

🌟 *70,000+ nominations* have been received over the years across India, the Middle East, Africa, Bangladesh, and Nepal.

🏅 Categories include:
• Business Maestro
• NewGen Icon
• Tech Transformer
• Wonder Woman
• Champion of Cause

If your journey deserves recognition, nominate your business today.

📅 Last date: *15 June 2026*

🔗 Nominate here: msmehonours.tallysolutions.com/programs/apply/msm9…

2 months ago | [YT] | 4

RTS Professional Study

📢 ITR Filing Due Dates AY 2026-27

✅ Non Audit Cases
🗓 Due Date: 31 July 2026

✅ Business/Profession without Audit
🗓 Due Date: 31 August 2026

✅ Tax Audit Cases
🗓 Due Date: 31 October 2026

✅ Transfer Pricing Audit Cases (Sec 92E)
🗓 Due Date: 30 November 2026

📌 ITR Wise Due Dates:

🔹 ITR-1 & ITR-2 – 31 July
🔹 ITR-3 (Non Audit) – 31 August
🔹 ITR-3 (Audit Case) – 31 October
🔹 ITR-4 (Presumptive) – 31 July / 31 August
🔹 ITR-5 – As applicable
🔹 ITR-6 (Company) – 31 October
🔹 ITR-7 (Trust/Institution) – 31 October / 30 November

⚠️ File your ITR on time to avoid late fees and penalties.

#IncomeTax #ITR #ITRFiling #AY202627 #rtsprofessionalstudy

2 months ago | [YT] | 9

RTS Professional Study

Today, I had a detailed discussion with GST Practitioners and Tax Consultants regarding TDS Return Filing as per the New Income Tax Act. Various practical issues, compliance requirements, and filing procedures were discussed for better professional understanding.


Thank you.

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2 months ago (edited) | [YT] | 21