India plans to implement easing rules related to the Goods and Services Tax (GST) for post-sale discounts while speeding up provisional refunds for businesses facing inverted duty structures from November 1, according to a government notification dated October 26, Reuters reported via TradingView.

Source: Reuters via TradingView

The measures were announced in the 2026-27 Budget, Reuters said in its summary of the notification. An inverted duty structure arises when the tax rate on inputs is higher than the tax rate on the finished product, leaving businesses with accumulated input tax credit that they claim back as refunds.

Source: Reuters via TradingView

The November 1 start also covers the first phase of GST process reforms recommended by the GST Council, a senior finance ministry official had said, Informist reported. From November 1, the system will sanction 90 per cent of the amount claimed on refund claims on account of zero-rated supplies and inverted duty structure on a provisional basis automatically, without officer intervention, on the basis of system-identified risk evaluation, the official said, according to Informist.

Source: Informist

The time limit for issuing a refund acknowledgement or deficiency memo will also be reduced from 15 days to 10 days effective November 1, and the full refund claim of excess balance in the electronic cash ledger will be sanctioned automatically by the system without officer intervention, Informist reported, citing the official.

Source: Informist