Key GST proposals in Finance Bill 2026

Key GST Proposals in Finance Bill, 2026 – At a Glance

The Finance Bill, 2026 proposes several practical and taxpayer-friendly amendments under GST, focusing on valuation clarity, faster refunds, export competitiveness, and dispute resolution. Key highlights:

1️⃣ Post-sale discounts – Section 15(3), CGST
• Condition of “prior agreement” for post-sale discounts removed
• Credit note u/s 34 permitted if recipient reverses proportionate ITC
• Significant relief for trade discounts / year-end incentive schemes
• Reduces valuation-related litigation

2️⃣ Credit notes – Section 34, CGST
• Explicit statutory linkage between credit notes and revised valuation u/s 15
• Aligns discount, value reduction, and ITC reversal into a single framework

3️⃣ Refunds – Inverted Duty Structure – Section 54(6), CGST
• Provisional refund (up to 90%) extended to inverted duty refunds
• Major cash-flow relief for sectors with higher input GST than output GST

4️⃣ Export refunds – Section 54(14), CGST
• Threshold limit for sanction of refund in case of export of goods with payment of tax removed
• Streamlines refund process for exporters and improves liquidity

5️⃣ GST Appellate mechanism – Section 101A, CGST
• Government empowered to authorise an existing Authority/Tribunal to hear appeals u/s 101B until National Appellate Authority is constituted
• Ensures continuity of appellate remedy and reduces legal uncertainty

6️⃣ Place of Supply for intermediaries – Section 13(8), IGST
• Clause (b) omitted – intermediary PoS no longer supplier’s location
• PoS to be determined under general rule (location of recipient)
• Major boost for export of intermediary services and “Services from India” model

Overall Impact:
The proposals aim to reduce litigation, improve cash flows, strengthen exports, and move towards a trust-based GST regime.