Union Budget 2026: Key Reforms In GST, Infrastructure, Manufacturing & Textiles

The Union Budget 2026 has introduced significant changes with wide-ranging implications. Our experts at Lakshmikumaran & Sridharan Attorneys have analysed these announcements in detail.

Please find their commentary below. Should you have any immediate questions or wish to explore further insights, feel free to reach out.

Attributed to Shivam Mehta, Executive Partner, Lakshmikumaran & Sridharan Attorneys

Inverted Duty

The refund provisions have now been amended to extend the facility of a 90 % provisional refund to cases of inverted duty structure claims as well, a benefit that was previously limited to zero-rated supplies of goods or services. This change is in alignment with the recommendations made by the 56th GST Council and aims to improve liquidity for businesses facing refund delays. However, many in industry had hoped that Budget 2026 would also address the long-standing demand of refund of unutilised input tax credit on services and capital goods,