Key Highlights of Proposed Changes under GST in Union Budget 2026
                     Key Highlights of Proposed Changes under GST in Union Budget 2026
The Union Budget 2026–27 proposes targeted yet impactful amendments to the GST framework through 
changes to the CGST Act, 2017 and the IGST Act, 2017, aimed at easing compliance, improving cash flows, 
and aligning GST with commercial realities. Key reforms include simplifying the treatment of post-supply 
discounts by removing the requirement of pre-supply agreements and invoice linkage, subject to issuance 
of credit notes and ITC reversal. Provisional refunds of up to 90% are extended to inverted duty structure 
cases, and the ₹1,000 refund threshold is removed for exports with payment of tax, benefitting small 
exporters. The Budget also provides a stop-gap appellate mechanism for advance rulings until the National 
Appellate Authority is constituted. Most notably, the omission of the intermediary services place-of-supply 
rule shifts taxation to the recipient’s location, restoring export benefits to Indian intermediaries and 
correcting a long-standing anomaly. Overall, the GST amendments seek to reduce disputes, improve 
liquidity, and reinforce GST’s destination-based principle.
Key Highlights of Union Budget 2026-27 Changes under GST Law The Finance Bill, 2026 has proposed changes 
in the CGST Act, 2017 & IGST Act, 2017 through Clauses 137 to 141 of the Finance Bill, 2026 in the CGST 
Act, 2017 & IGST Act, 2017. Unless specified otherwise, amendments proposed in the Finance Bill, 2026 
vide Clauses 137 to 141 will come into effect from a date when the same will be notified concurrently, as 
far as possible, with the corresponding amendments to the similar Acts passed by the States & Union 
territories with legislature.
Note: (a) CGST Act means Central Goods and Services Tax Act, 2017 (b) IGST Act means Integrated Goods 
and Services Tax Act, 2017 (c) UTGST Act means Union Territory Goods and Services Tax Act, 2017

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