CA Final IDT Amendments (Baggage Rules 2026) | For Nov'26 Exams | CA Sahil Baghai

Overview

The lecture reviews CA Final IDT amendments for the November 2026 exams. The instructor identifies the Baggage Rules, 2026 as the most important amendment and devotes most of the session to explaining the rules and working through examples. He also covers selected GST and customs changes.

GST Amendments

E-commerce operators and local delivery

A new reverse-charge-style liability applies to services involving local delivery through an e-commerce operator:

• If the local-delivery supplier is unregistered, the e-commerce operator is liable to pay GST.
• If the supplier is registered, the supplier pays GST and the operator collects TCS.

The lecturer emphasizes that this applies to local delivery, not inter-city or international delivery. He also reviews existing section 9(5) categories, including passenger transport, accommodation, restaurant services in specified cases, and services provided through platforms such as Urban Company.

The lecturer says local delivery involving an e-commerce operator does not qualify for the relevant transport exemption, whether the operator supplies the service itself or facilitates it.

GTA rate

The GTA rate that was previously 12% is described as increasing to 18%. The lecturer says the other GTA options and related conditions remain unchanged.

Life and health insurance

Individual life and health insurance for an individual or family is described as exempt from GST. Group insurance remains taxable, including employer-arranged group cover and non-employer groups, according to the lecturer. He also notes that input tax credit is blocked in the cases discussed.

Post-supply discounts and credit notes

The requirement for a Chartered Accountant or Cost Accountant certificate in specified post-supply discount cases is described as removed. The recipient’s undertaking that the related ITC has been reversed is sufficient, regardless of the discount amount. The underlying conditions for reducing taxable value through a discount—such as an agreement and reversal of related ITC—remain relevant.

Where a supplier issues a commercial or financial credit note without reducing the original GST liability, the recipient is not required to reverse ITC merely because the payment was discounted.

A manufacturer’s discount to a dealer is generally not consideration for the dealer’s onward supply where the manufacturer and end customer have no agreement requiring the discount to be passed on. If the manufacturer has agreed with the end customer that the dealer will pass on the discount, the lecturer says it may be treated as an inducement linked to the dealer’s supply.

If the dealer separately provides promotional services—such as advertising or a sales campaign—under an agreement with defined consideration, the dealer’s service is taxable.

Specified tobacco and related products: RSP valuation

For specified goods, including pan masala and tobacco products, the lecturer explains a special valuation method based on retail sale price (RSP):

Tax amount = RSP × tax rate ÷ (100 + tax rate)

At a 40% rate, this is RSP × 40 ÷ 140.

RSP is the maximum price declared on the package, inclusive of taxes. If the RSP is altered upward, the altered price is used. If multiple prices appear on the same package, the higher price is used; different packages may use their respective declared prices.

Input Service Distributor and Rule 86B

An Input Service Distributor (ISD) may distribute credit for GST paid under reverse charge on input services, including the credit described for CGST and IGST.

The lecturer describes an exception to Rule 86B for specified goods taxed on an RSP basis. The exception is discussed for registered persons other than manufacturers; manufacturers remain subject to the rule as explained in class.

Faster registration for small taxpayers

A faster registration process is described for qualifying small taxpayers whose monthly output tax liability on B2B supplies does not exceed ₹2.5 lakh. The lecturer says registration may be granted within three working days, subject to Aadhaar authentication and risk-based checks.

The scheme is limited to one registration in a state. A taxpayer may later withdraw the option, subject to filing required returns and meeting the stated conditions.

Refunds, demands and appeals

• Provisional refunds under the cited provisions are described as being issued within seven days, with some applicants and specified suppliers excluded.
• For certain demand proceedings, the relevant officer is determined by the combined CGST and IGST tax amount, excluding interest and penalties.
• Appeal-related monetary limits are to be assessed across the relevant issues and tax periods. Certain manual forms are described as having been removed.

Baggage Rules, 2026

The instructor treats this as the main exam topic and repeatedly works through passenger examples.

Used personal effects and duty-free clearance

Passengers arriving in India, including infants, may bring personal effects required for daily needs and travel souvenirs duty-free, subject to specified exclusions.

The lecturer explains “personal effects” broadly as articles for a passenger’s personal use, whether new or used. Commercial goods are not covered. Goods listed in Annexure I are excluded from the general duty-free treatment.

The lecturer says officers need not verify every item’s condition unless there is reason to suspect that an item is new or otherwise ineligible.

Re-import and temporary import

Certain personal effects taken out of India earlier may be brought back duty-free, subject to the required declaration or permission.

A tourist may temporarily import personal effects needed during the stay, provided they are re-exported when leaving India.

General Free Allowance

For eligible residents, passengers of Indian origin, and foreigners holding a valid visa other than a tourist visa, the lecturer gives a General Free Allowance (GFA) of ₹75,000 when arriving other than by land. For a tourist of foreign origin, he gives an allowance of ₹25,000.

These allowances do not apply to Annexure I goods. Passengers arriving by land are described as entitled only to duty-free clearance of used personal effects, not the general allowance. The allowance cannot be pooled between passengers.

Laptop allowance

A passenger aged 18 or above may bring one new laptop, including a notebook, duty-free in addition to the general allowance, as explained by the lecturer.

Jewellery

For a resident or tourist of Indian origin who has lived abroad for more than one year, the lecturer gives a separate duty-free jewellery allowance:

• 40 grams for a female passenger.
• 20 grams for another passenger.

The former value cap is described as removed. The allowance concerns jewellery worn as an ornament, not gold bars or other investment forms. Jewellery taken out of India earlier may be brought back subject to the required export certificate or declaration.

Transfer of residence

For returning residents and passengers of Indian origin, the lecturer gives the following duty-free limits for qualifying personal and household goods:

• Stay abroad of 3–12 months: up to ₹1.5 lakh.
• Stay abroad of 1–2 years: up to ₹3 lakh.
• Stay abroad of more than 2 years: up to ₹7.5 lakh.

For the higher allowance, the lecture highlights conditions including at least two years’ residence abroad, limited short visits to India during the preceding two years, and not having claimed the concession in the preceding three years. It also describes limited written relaxations by customs authorities.

The lecture gives a similar tiered structure for foreigners holding a valid non-tourist visa, with qualifying stay periods described as starting at six months. Household goods are subject to stated conditions, including limits on the number of units and the categories listed in the relevant annexure.

Unaccompanied baggage

Unaccompanied baggage may be allowed if it arrives within the permitted period after the passenger’s arrival, or was dispatched shortly before it. The lecturer says extensions may be allowed in exceptional circumstances, with reasons recorded.

The GFA does not apply to unaccompanied baggage.

Annexure I goods and duty

The lecture identifies firearms, excess ammunition, cigarettes, cigars, tobacco, excess alcoholic liquor, and certain forms of gold or silver among the items subject to special restrictions or duty.

The lecturer gives examples of quantity limits, including:

• 100 cigarette sticks
• 25 cigars
• 125 grams of tobacco
• 2 litres of alcoholic liquor

He discusses different duty rates for specified excess goods, including 70% for certain listed items and 100% for others. Passengers carrying commercial quantities cannot claim ordinary bona fide baggage treatment.

Detention and re-export

A passenger may request that a restricted or prohibited article be detained by customs rather than cleared. The article may be returned when the passenger departs, or through another authorized passenger if necessary.

The lecturer also discusses a temporary baggage import certificate for tourists whose articles are detained, subject to re-export within the applicable period.

Crew members and declarations

Crew members may bring specified personal or family-use items, with a separate allowance of ₹2,500 described in the lecture.

Passengers with dutiable or prohibited goods must make the required declaration. The lecture refers to electronic declaration and the “Atithi” system, and contrasts this with the green channel for passengers with nothing to declare.

Other Customs Points

• RoDTEP: The scheme’s extension is discussed, with the lecturer referring to 30 September 2026 for eligible exports.
• Deferred payment of customs duty: The lecturer reviews payment timing for eligible importers and says eligible manufacturer-importers may receive the facility up to 31 March 2028.
• Eligible manufacturer-importer criteria: The lecture lists conditions such as importer and manufacturer status, a valid import-export code, a minimum number of import/export documents, active GST registration, sufficient turnover and operating history, filed returns, a clean compliance record, and financial-solvency certification where required.
• Exam preparation: The instructor advises students not to skip amendments, recommends the ICAI material, and emphasizes practicing baggage-rule problems because they can combine eligibility, item limits, valuation, and duty rates.

Speakers and Sources

• CA Sahil Baghai — the sole identifiable lecturer and speaker.
• Sources and authorities discussed: ICAI amendment materials and website; CBIC and customs provisions; the Customs Act; and GST rules and provisions referred to in the lecture.
• Incidental reference: A brief Doraemon lyric or analogy appears during the class; it is not part of the tax instruction.