The Finance Bill, 2026 was passed in the Lok Sabha on 25th March, 2026 and enacted as the Finance Act, 2026 (No. 4 of 2026) on 30th March, 2026 after receiving the Presidential assent GOODS AND SERVICES TAX (GST).
The amendments made by the Finance Act, 2026 in the CGST Act, 2017, shall become effective from a date to be notified by the Central Government except the following amendments which will become effective as under:
- Insertion of sub-section (1A) in section 101A of the CGST Act, 2017 shall be effective from 1stApril, 2026.
- Omission of sub-section (8) of section 13 of the IGST Act, 2017 has become effective from 30thMarch, 2026.
Principle of Commencement in Absence of Specific Effective Date
In cases where the Finance Act does not expressly prescribe the date of enforcement for a particular amendment, recourse must be taken to Section 5 of the General Clauses Act, 1897 which describes that:
- Coming into operation of enactments.
(1) Where any Central Act is not expressed to come into operation on a particular day, then it shall come into operation on the day on which it receives the assent,—
(a) in the case of a Central Act made before the commencement of the Constitution, of the Governor-General, and
(b) in the case of an Act of Parliament, of the President.
Snapshot of Amendment Under the Finance Act, 2026
Set out below is a concise summary of key amendments introduced in the CGST Act, 2017 pursuant to the Finance Act, 2026
| Section | Area | Amendment | Earlier Position | Practical Impact | Effective Date |
| Section 15 & 34 | Valuation (Post-Supply Discount) | Removal of pre-agreement condition; credit note allowed even if not pre-agreed (subject to ITC reversal) | Discount allowed only if agreed before/at time of supply | Flexibility in pricing; reduced litigation | To be notified |
| Section 54 | Refund (Provisional) | 90% provisional refund extended to Inverted Duty Structure (IDS) | Allowed only for zero-rated supplies | Improved liquidity; faster refunds | To be notified |
| Section 54(14) | Refund Threshold | ₹1,000 minimum limit not applicable for IGST refund on exports | Refund not granted if < ₹1,000 | Relief for exporters; no loss of small refunds | To be notified |
| Section 101A | Advance Ruling | Govt. can notify existing authority (incl. Tribunal) as interim appellate authority | NAA not functional; no effective appellate remedy | Resolves conflicting rulings; improves certainty | 01 April 2026 |
| Section 13(8)(b) (IGST Act) | Place of Supply (Intermediary) | Provision omitted → Default rule (location of recipient) applies | POS was location of supplier | Boost to export of services (IT/BPO sectors) | 30 March 2026 |
The Finance Act, 2026 can be accessed at: https://egazette.gov.in/WriteReadData/2026/271439.pdf
DISCLAIMER:
The information contained herein is in summary form and is prepared based on the provisions of GST and allied laws and related Rules, Circulars, Notifications, judgments/orders, press releases, trade notices etc therein. For details, please refer the relevant provisions. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.
To download the pdf file of the above post, please click on the download button below.
About Our GST & Indirect Tax Services
Our GST & Indirect Tax Services team focuses on resolving practical issues faced by taxpayers and businesses while ensuring due compliance with complex legislation. Our services extend from timely and systematic support for GST compliances to advisory on a wide range of contemporary indirect tax issues and GST litigation support.
Our team of GST Consultants possesses in depth experience across diverse sectors and offer tailored solutions for tax optimization while ensuring due compliance with this complex and dynamic legal transaction regime law. To know more about our services, visit https://dpncglobal.com/