As expectations build ahead of Union Budget 2026,
The Finance Bill is likely to introduce Five Major Amendments to the GST Law aimed at simplifying Compliance, improving Liquidity, and reducing long-standing Litigation.
Based on recommendations of the GST Council, these changes could significantly improve India’s ease of doing Business.
Post-Sale Discounts: Long-Awaited Relief
One of the most impactful proposals relates to Post-sale Discounts.
Amendments to Sections 15 and34 of the CGST Act may remove the requirement that Discounts must be pre-agreed and linked to specific invoices.
This is expected to resolve a major pain point for Businesses operating through Dealer, Distributor, and Retail Networks, where discounts are often determined after Supply.
The change could sharply reduce Disputes and the Denial of Tax benefits.
Intermediary Services: Export Boost for Service Providers
Another crucial Amendment targets the Place of Supply rules for Intermediary Services.
The proposed deletion of Section 13(8)(b) of theIGST Act would shift the place of supply to the Location of the Service Recipient.
This move would allow Indian Intermediary Service Providers to qualify as exporters of services, unlocking export-related GST benefits and potentially resolving litigation worth over ₹3,000 crore.
However, some overseas service recipients may now fall under the Reverse Charge Mechanism (RCM).
Refund Relief for Small Exporters
To support small exporters, the Finance Bill may remove the ₹1,000 minimum threshold for GST refunds on exports made with payment of tax.
This will benefit exporters using courier and postal channels with frequent low-value shipments.
Faster Refunds Under Inverted Duty Structure
Proposed Amendments would allow 90% provisional refunds for Inverted Duty Structure (IDS) cases, bringing parity with Zero-rated Supplies and providing Statutory Backing to existing CBIC Instructions.
Expanding IDS Refund Scope
Industry also expects IDS refunds to be extended to Input Services and Capital Goods, easing working capital stress caused by Accumulated Input Tax Credit.
What This Means for Businesses
Together, these reforms signal a clear intent to reduce Litigation, simplify GST, and strengthen Cash Flows.
If implemented, Budget 2026 could mark a meaningful shift toward a more predictable and Business-friendly Tax Regime.
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Budget 2026: 5 Big Changes that could Cut Disputes & improve Cash Flow.