GST Changes From 1 November 2026: Discounts, 90% Refunds

CBIC Notification 03/2026-Central Tax of 26 October 2026 brings sections 153 to 155 of the Finance Act, 2026 into force on 1 November 2026. News reports say these cover post-sale discounts, 90% provisional refunds for inverted duty, no minimum for export refunds and the place of supply for intermediary services.

What changed
When: 1 November 2026. This date is in CBIC Notification No. 03/2026-Central Tax dated 26 October 2026. The details in the table below are as described by two news reports. Some changes roll out in stages as the GST system is upgraded. A second set that needs law amendments is targeted for 1 April 2027.
| Before | From 1 Nov 2026 |
|---|---|
| Post-sale discounts | |
| Tied to strict conditions | Simpler rules and credit note provisions |
| Refund when GST on inputs is higher than on sales (inverted duty) | |
| Refund after full processing | 90% provisional refund upfront, subject to risk checks |
| Refund of tax paid on exports | |
| Minimum ₹1,000 | No minimum limit |
| Place of supply for intermediary services | |
| Location of the intermediary | Location of the service recipient |
| Sanction of refunds | |
| Manual | Automated for future claims, where applicable |

What are the new GST rules from 1 November 2026?
The official notice is CBIC Notification No. 03/2026-Central Tax (S.O. 5791(E)) dated 26 October 2026. It appoints 1 November 2026 as the date from which sections 153 to 155 of the Finance Act, 2026 come into force. Reports of 27 and 28 October 2026 say these changes came out of the 57th GST Council meeting of 8 October 2026.
The notice itself only fixes the date. The details of each change below are what The Hans India and India.com report, and both agree on them. CBIC also issued other notices on 26 and 27 October, such as GST registration through an e-commerce warehouse and e-invoicing for reverse charge purchases.
How will GST on post-sale discounts work now?
Both reports say the rules for discounts given after a sale are simplified, with credit note provisions that make them easier to manage. Distributors and retailers are the main groups affected.
If you give or get trade discounts after the invoice, ask your accountant how credit notes will be treated for your input tax credit from 1 November.

What is the 90% provisional GST refund for inverted duty?
An inverted duty structure means the GST you pay on inputs is higher than the GST you charge on sales. Both reports say such businesses can claim 90 per cent of the refund upfront, subject to risk checks.
The reports add that automated sanction of refunds begins after 1 November where applicable. It applies to future claims, not to claims that are already pending.
Is the ₹1,000 minimum for GST export refunds removed?
Yes, as reported. The old minimum of ₹1,000 for claiming a refund of tax paid on exports is removed, so a claim can be made for any amount. This helps small exporters who ship through courier or post.
The reports also say that for services supplied through intermediaries, the place of supply moves to the location of the service recipient. This is expected to help Indian service exporters.
What changes only from 1 April 2027?
Both reports say a later set of changes needs amendments to the GST laws and is targeted for 1 April 2027. The reports do not agree on every detail there, so we do not list them. Until the law is amended, nothing in this later set applies to you.

Frequently asked questions
When do the new GST changes start?
Two reports say 1 November 2026. Some changes roll out in stages as the GST system is upgraded.
Is this confirmed by the official notification?
The start date is. CBIC Notification No. 03/2026-Central Tax dated 26 October 2026 brings sections 153 to 155 of the Finance Act, 2026 into force on 1 November 2026. The details of each change are as reported by two news outlets.
Do small exporters still need a ₹1,000 minimum for a refund?
No, as reported. The minimum for refund of tax paid on exports is removed, so a claim can be made for any amount.
Does the 90% refund apply to my pending claim?
The reports say automated sanction applies only to future claims, not to claims already pending.
GST discount par credit note kab se lagu hoga?
Reports ke hisaab se 1 November 2026 se, lekin kuch badlav system upgrade ke saath dheere dheere aayenge. Official notification padhkar hi billing badlein.
Short summary in Hinglish
CBIC ki Notification 03/2026-Central Tax (26 October 2026) ke mutabik Finance Act 2026 ki dhara 153 se 155 1 November 2026 se lagu hain. News reports ke hisaab se inme post-sale discount par credit note, inverted duty par 90% provisional refund aur export refund par ₹1,000 ki minimum limit khatam hona shamil hai.


