Insights · 3 November 2026

GST changes from 1 November 2026: post-supply discounts, faster refunds and new registration rules

What changed

On 26 October 2026 CBIC issued Notification 03/2026–Central Tax and Notification 05/2026–Central Tax (the CGST (Amendment) Rules, 2026). Most provisions took effect on 1 November 2026; some follow on 1 December 2026, 1 January 2027 and 1 April 2027.

Discounts and credit notes (Notification 03/2026)

• A discount given after the supply can reduce the taxable value if the supplier issues a credit note and the recipient reverses the related input tax credit (ITC). The earlier conditions that the discount be agreed at or before the supply and tied to specific invoices no longer apply.
• The old rules continue for supplies and credit notes before 1 November 2026.

Refunds

• The 90% provisional refund under section 54(6), earlier limited to zero-rated supplies, now also covers unutilised ITC from an inverted duty structure.
• The ₹1,000 minimum refund limit does not apply to refunds for goods exported with tax paid.
• Under the amended rules, the acknowledgment or deficiency memo is due within 10 days (earlier 15), and the provisional refund order within 3 working days of acknowledgment.
• The export turnover cap in Rule 89(4) is removed from 1 November 2026. A new RFD-01 form applies from 1 December 2026.

Registration

• New Rule 14B lets a seller registered in one State register in another State using an e-commerce operator's warehouse as its principal place of business, subject to conditions such as a ₹2.5 lakh monthly B2B output tax cap and the operator's consent within 7 working days.
• Amendments to registration (REG-14) have a 15-day window with deemed approval if the officer does not act; cancellation on request (REG-16) must be filed within 30 days of the event.
• Rules on automatic suspension and cancellation apply from 1 April 2027.

What to prepare

• Check how your accounting or ERP software records post-supply discounts: a credit note on your side, and the matching ITC reversal on your customer's side.
• If you export or have an inverted duty structure, review your refund claims and the new timelines with your tax adviser.

Sources

• Taxonation.AI: GST Notifications 03/2026, 04/2026 & 05/2026–Central Tax: key changes (28 October 2026), which summarises the notifications dated 26 October 2026

This is a secondary tax-news source; read the notifications on the CBIC / GST portal before acting. This note is general information, not tax advice. Earlier note: GST e-invoicing for reverse-charge self-invoices. See also BizArch ERP GST & e-invoicing.