On 26 October 2026, the Central Board of Indirect Taxes and Customs (CBIC), exercising powers under Section 1(2)(b) of the Finance Act, 2026, appointed 1 November 2026 as the date on which Sections 153 to 155 of the Act will come into force.
These provisions amend the Central Goods and Services Tax Act, 2017 (CGST Act) revising the framework relating to post-supply discounts, credit notes and GST refunds.
Key Points of Sections 153 to 155 of the Finance Act, 2026:
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Section 15(3)(b) of the CGST Act has been amended to provide that post-supply discounts may be excluded from the value of supply where:
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A credit note has been issued by the supplier; and
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The recipient reverses the corresponding input tax credit attributable to such discount in accordance with Section 34.
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Section 34(1) has been amended to expressly permit issuance of a credit note where a discount referred to in Section 15(3)(b) is granted after the supply has been effected.
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Section 54(6) has been amended to extend the provisional refund framework to refunds of unutilised input tax credit allowed under clause (ii) of the first proviso to Section 54(3).
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Section 54(14) has been amended to carve out an exception for refund claims relating to goods exported out of India with payment of tax.
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The amendments provide a clearer statutory framework for the GST treatment of post-supply discounts by linking valuation benefits to the issuance of credit notes and reversal of the corresponding input tax credit by recipients.
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The amendments also broaden the scope of provisional refunds and provide greater clarity regarding refund claims involving unutilised input tax credit and exports.
Also Read: Capital Gains Taxation of Share Buybacks: A Critical Analysis of the 2026 Reform
[Finance Act, 2026 implementation notification, dated 26-10-2026]
