Finance Ministry sets Nov 1 to implement simplified post-sale discount rules, 90% provisional refunds for IDS

The Finance Ministry has set November 1 as the date for implementation of Finance Act provisions related to post-supply discounts, provisional refunds under the inverted duty structure, and removal of the ₹1,000 minimum refund threshold for export of goods made with payment of tax.

These changes are being brought through amendment in GST Act, prescribed in the Finance Act, 2026.

A key change is related to post-supply discounts. Earlier, exclusion of post-supply discounts from the value of taxable supply was subject to prescribed conditions, including the requirement that such discounts should have been established under an agreement entered at or before the time of supply, and specifically linked to the relevant invoices. Further, the recipient was required to reverse the ITC attributable to such discounts. These conditions frequently created practical difficulties for manufacturers, distributors, dealers, wholesalers and other businesses offering turnover-based incentives, performance-linked rebates, sales-target discounts and other post-sale commercial incentives.