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GST Update – Amendments vide Finance Act, 2026

Below is a summary of the major changes:

1. Post-Sale Discount – ITC Reversal Clarified

Section 15(3) & Section 34 amended (CGST Act)

Post-sale discounts will now be allowed only if linked to specific invoices through prior agreement.

Mandatory reversal of ITC by the recipient where a credit note is issued for such discounts.

Yet to be notified

2. Refund for Inverted Duty Structure

Section 54(6) & 54(14) amended (CGST Act)

Provisions extended to allow provisional refund in cases of inverted duty structure.
Restriction on refunds for goods exported under the duty payment route has been refined.
Yet to be notified

3. National Appellate Authority – Strengthened Framework

Section 101A amended (CGST Act)

Government empowered to transfer pending appeals to the National Appellate Authority.
Clarification that the Authority shall function as a Tribunal.
Effective from 1^st April 2026.

4. Place of Supply for Intermediary Services

Section 13(8)(b) omitted (IGST Act)

POS for intermediary services will now be determined as per the general rule (location of recipient).
Major relief for exporters of services – reduces GST burden on cross-border intermediary services and now can apply for a refund of unutilized ITC.
Effective from 1^st April 2026.