Union Budget 2026-27 - Indirect Tax

1. Goods & Services Tax (GST)

Changes coming into force on enactment of the Finance Bill, 2026

1.1 The Central Goods and Services Tax Act, 2017 (the CGST Act)

Post-sale discounts

• Section 15(3)(b) of the CGST Act previously allowed discounts to be excluded from the taxable value only where such discounts were provided under a prior agreement.
• The proposed amendment to Section 15(3)(b) removes the requirement for a prior agreement as well as the need for invoice‑level linkage.
• However, issuance of credit notes under Section 34 of the CGST Act will be required, with the recipient required to reverse the corresponding Input tax credit (ITC).
• This measure will reduce procedural complexity and make compliance easier for businesses operating high‑volume transactions or incentive‑based pricing models.