CBIC removes Prior Agreement and Invoice-Linking Conditions on Post-Supply Discounts - Notification No. 03/2026–CT

CBIC's Notification No. 03/2026–Central Tax dated 26 October 2026 appoints 1 November 2026 as the effective date for Sections 153 to 155 of the Finance Act, 2026, amending Sections 15, 34 and 54 of the CGST Act, 2017. Earlier, under Section 15(3)(b), post-supply discounts could be excluded from taxable value only if agreed upon before or at the time of supply and specifically linked to relevant invoices. The amended provision removes these two conditions, subject to issuance of a credit note and reversal of the corresponding ITC by the recipient in accordance with Section 34, providing greater flexibility for turnover-based incentives, volume rebates and other post-sale discounts.

central-tax-03-gst-27102026 (1).pdf