Union Budget 2026 – Important GST Amendments for Businesses in Delhi NCR

(GST Consultant in Delhi, GST Advisory Services in Ghaziabad, GST Compliance Services in Noida, GST Filing Expert in Loni)

The Union Budget 2026 has proposed several important amendments in GST law that will directly impact businesses, exporters, manufacturers, and service providers across India.

If you are looking for GST advisory services in Delhi NCR, here is a simple explanation of the key changes.

Relief in Post-Supply Discounts (Amendment to Section 15)

What Was the Problem Earlier?

Earlier, post-supply discounts were allowed as deduction from taxable value only if:

• The discount was agreed before or at the time of supply
• It was clearly linked to the invoice

This created practical difficulties for:

• Dealers
• Distributors
• Manufacturers offering turnover incentives
• Annual volume discounts

What Has Changed in Union Budget 2026?

Now:

✅ No need for prior written agreement

✅ Post-supply discounts allowed even if not pre-decided

✅ Supplier must issue Credit Note under Section 34

✅ Recipient must reverse proportionate ITC

This makes GST compliance more practical and business-friendly.

Simple Example

• Goods sold = ₹1,00,000
• GST @18% = ₹18,000
• Later discount given = ₹10,000

Now supplier can:

• Issue credit note for ₹10,000 + ₹1,800 GST
• Reduce output tax by ₹1,800
• Buyer must reverse ITC of ₹1,800

✔ Revenue remains neutral

✔ Less litigation

✔ More flexibility

Amendment to Section 34 – Clear Link with Valuation

Now Section 34 clearly refers to Section 15(3)(b).

Meaning:

Post-supply discounts are officially recognised as valid grounds for issuing credit notes.

Earlier there was confusion.

Now law is clearer and reduces disputes.

Provisional Refund for Inverted Duty Structure (Section 54)

Big Relief for Manufacturers

Now 90% provisional refund is allowed for:

• Unutilised ITC due to inverted duty structure

Earlier this benefit was mainly for exporters.

Example

If unutilised ITC = ₹16,600

You can now get ₹14,940 (90%) as provisional refund quickly.

Benefits:

✔ Better working capital

✔ Less refund delays

✔ Helpful for textile, chemical, steel sectors

If you need GST refund assistance in Ghaziabad or Delhi, this amendment is very beneficial.

Removal of ₹1,000 Minimum Refund Limit

Earlier:

Refund below ₹1,000 was not allowed.

Now:

Even small refund amounts are permitted.

This benefits:

• Small exporters
• MSMEs
• New businesses

5️⃣ Major Change in Intermediary Services (IGST Section 13)

This is one of the biggest changes in Budget 2026.

Earlier:

For intermediary services, place of supply = Location of supplier (India)

So even if you provided service to foreign client:

❌ It was not treated as export

❌ IGST @18% was payable

❌ No zero rating benefit

🔹 After Amendment

Section 13(8)(b) is deleted.

Now place of supply = Location of recipient.

Meaning:

If client is outside India:

✅ Service qualifies as export

✅ Zero-rated supply

✅ Refund of ITC allowed

✅ Can supply under LUT

Example – IT Company in Pune

Before amendment:

• IGST @18% payable
• No refund

After amendment:

• Treated as export
• Zero-rated
• ITC refund allowed

Huge relief for:

• IT companies
• Marketing agents
• Commission agents
• Export service providers

If you provide intermediary services and need GST consultancy in Delhi NCR, this amendment can significantly reduce tax burden.

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6️⃣ Interim Appeal Mechanism for Conflicting Advance Rulings

Earlier Problem:

If two states gave different GST rates for same product:

There was no proper national authority functioning.

Taxpayers had to approach High Court.

Now:

Government can notify an existing tribunal to handle such appeals until National Appellate Authority is formed.

Benefit:

✔ Uniformity across states

✔ Faster resolution

✔ Reduced litigation

Overall Impact of Union Budget 2026 GST Amendments

These amendments aim to:

• Reduce GST disputes
• Improve working capital
• Support exporters
• Align GST with commercial reality
• Improve ease of doing business

Effective Date

These amendments will apply from date notified by Central Government (likely after 1 April 2026).

Need Professional GST Advisory in Delhi NCR?

If your business is located in:

• Delhi
• Ghaziabad
• Noida
• Loni
• Gurgaon

And you need:

• GST Registration
• GST Refund Filing
• GST Litigation Support
• ITC Reconciliation
• Advisory on Intermediary Services

You may consult a professional GST consultant to understand how these amendments affect your business.