CBIC has brought three Finance Act, 2026 amendments to the CGST Act into force from November 1, easing post-supply discounts and speeding up refunds.

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• CBIC issued Notification 03/2026–Central Tax on October 26, 2026, appointing November 1, 2026 as the commencement date for Sections 153 to 155 of the Finance Act, 2026.
• The sections amend Sections 15, 34 and 54 of the CGST Act, 2017, covering post-supply discounts, credit notes and refunds.
• The changes were announced in the Union Budget 2026-27 and passed as part of the Finance Act, 2026.
• Earlier, a post-supply discount could be excluded from the value of supply only if it was based on an agreement made at or before the time of supply.
• The Finance Act removes that requirement for an agreement.
• A post-supply discount can now be excluded from the value of supply if the supplier issues a credit note and the recipient reverses the corresponding input tax credit.
• Section 34(1) of the CGST Act has also been amended to recognise credit notes issued for discounts covered under Section 15(3)(b).
• Section 54(6) now extends the facility of a 90% provisional refund to eligible claims under the inverted duty structure.
• An inverted duty structure arises when GST on inputs is higher than GST on outputs, leaving unutilised input tax credit.
• The provisional refund for inverted duty claims is subject to risk checks and prescribed conditions.
• The ₹1,000 minimum threshold for sanctioning refunds on exports of goods made with payment of tax has been removed, benefiting small courier and postal exporters.
• The changes are expected to give businesses relief and help unlock working capital.