Check dates before you act: The changes start on different dates: 1 November 2026, 1 December 2026, 1 January 2027 and 1 April 2027. This summary is based on ICAI’s GST Update 275 and published reports. Please confirm the details against the official notifications.
At a glance
| Notification (26 Oct 2026) | What it does | Starts |
|---|---|---|
| 03/2026-Central Tax | Brings sections 153 to 155 of the Finance Act, 2026 into force: Section 15(3)(b), Section 34(1), Section 54(6) and Section 54(14) | 1 November 2026 |
| 04/2026-Central Tax | Extends e-invoicing to RCM supplies from unregistered persons and import of services | 1 January 2027 |
| 05/2026-Central Tax | CGST (Amendment) Rules, 2026: Rule 14B, and new Rules 19, 20 and 21 | 1 November 2026 |
| 05/2026-Central Tax | Self-amendment of legal name and partners or directors (Rule 19(3)) | 1 December 2026 |
| 05/2026-Central Tax | Rules 21A, 22 and new Rule 23A: suspension, deemed cancellation and revocation | 1 April 2027 |
Finance Act, 2026: discounts and refunds (from 1 November 2026)
Notification 03/2026-Central Tax brings four changes into force:
- Section 15(3)(b), post-supply discounts: The substituted clause drops the earlier need for the discount to be agreed before or at the time of supply and linked to specific invoices.
- Section 34(1), credit notes: A credit note can now be issued for such a discount. The recipient reverses the related input tax credit.
- Section 54(6), provisional refund: The 90% provisional refund framework now also covers unutilised input tax credit under Section 54(3), first proviso, clause (ii). In plain terms, this includes inverted-duty refunds.
- Section 54(14), small refunds: The ₹1,000 minimum refund limit no longer applies to exports of goods made with payment of tax.
Who is affected: businesses that give year-end or volume discounts, exporters of goods paying IGST, and manufacturers with inverted duty structures.
E-invoicing extended to RCM and import of services (from 1 January 2027)
Notification 04/2026-Central Tax amends Notification 13/2020-Central Tax. E-invoicing will cover, in addition to the existing categories, supplies received from unregistered persons where the recipient pays tax under reverse charge, and import of services. It applies to taxpayers who are already covered by e-invoicing. The GSTN had earlier opened a sandbox for these self-invoices; see our post on GSTN Advisory 678, and our summary of the 57th GST Council meeting.
If your business pays tax under reverse charge or imports services such as software or consulting, ask your ERP or billing vendor now whether it will be ready before 1 January 2027.
New Rule 14B: registration through an e-commerce operator’s warehouse
Online sellers who send stock to e-commerce warehouses in several States have had to register in each State. Rule 14B, from 1 November 2026, lets a seller who is already registered in a home State register in another State without a physical presence there, by declaring the e-commerce operator’s warehouse as its place of business.
| Condition | What the rule says |
|---|---|
| Supplies | Goods supplied through an e-commerce operator that collects TCS under Section 52 |
| Home State | The seller must already hold a regular registration in a home State under the same PAN |
| Turnover limit | Output tax on supplies to registered persons (other than same-PAN registrations) must not exceed ₹2.5 lakh per month |
| Operator consent | The e-commerce operator must consent within 7 working days |
| Aadhaar | Aadhaar authentication is required |
| Limit | One such registration per State per PAN |
| Books | Kept at the home-State principal place of business |
| If things change | If the operator withdraws consent or its registration is cancelled, the seller has 30 days to amend the registration, otherwise it is deemed cancelled |
Sellers already registered under the simplified Rule 14A who want Rule 14B must first withdraw from Rule 14A using FORM GST REG-32. Marketplace sellers can read more in our guide to accounting and GST for Amazon and Flipkart sellers.
Amendment, cancellation and suspension of registration
- Rule 19, amendment (from 1 November 2026): The rule is substituted. Amendments are deemed approved if the officer takes no action within the prescribed time. From 1 December 2026, Rule 14A registrants who have not opted out can amend legal name, partners or directors, and principal place of business online. Other registrants can amend legal name and partners or directors online without officer approval.
- Rule 20, cancellation on your request: Cancellation is now system-based for eligible cases: returns are filed, dues are paid, and output tax on supplies to registered persons never exceeded ₹2.5 lakh in any month. An officer can propose an earlier cancellation date by show-cause notice, and you get 30 days to reply.
- Rule 21, cancellation by the department: Limited to objective defaults, such as a composition taxpayer not filing the annual return more than 3 months after the due date, a monthly filer not filing for 6 continuous months, a quarterly filer missing 2 continuous tax periods, or a Rule 10A violation.
- Rules 21A, 22 and 23A (from 1 April 2027): The portal will suspend such registrations automatically and you will get 30 days to file the pending returns or comply with Rule 10A. If you do not, the registration is deemed cancelled. A revocation application in FORM GST REG-21 can be filed within 180 days, provided pending returns, dues and bank details are complete.
The practical message: file every return on time. After 1 April 2027, a long gap in filing can end in suspension and cancellation with very little human review.
What to do now
- If you give post-sale discounts, review how you document them and how the credit note and ITC reversal are handled from 1 November 2026.
- If you export goods on payment of IGST, note that the ₹1,000 minimum refund limit no longer applies.
- Reverse-charge payers and importers of services: speak to your ERP vendor about e-invoicing before 1 January 2027.
- E-commerce sellers: check whether Rule 14B can replace State-wise registrations, and work out your monthly output tax on supplies to registered persons against the ₹2.5 lakh limit.
- Clear any pending GST returns, and make sure your bank details are updated on the portal under Rule 10A.
- Download the official notifications from the CBIC website and keep them with your compliance file.
FAQs
What are the CGST Amendment Rules, 2026?
They are amendments to the CGST Rules notified on 26 October 2026 through Notification No. 05/2026-Central Tax. Most changes apply from 1 November 2026. Some apply later: 1 December 2026 for self-amendment of registration details and 1 April 2027 for the new suspension and revocation rules.
What is new Rule 14B?
Rule 14B lets a seller who is already registered in a home State register in another State without a physical presence there, by declaring an e-commerce operator’s warehouse as its place of business. It has conditions, including the e-commerce operator’s consent and a monthly output tax limit of ₹2.5 lakh on supplies to registered persons.
Does e-invoicing now apply to reverse charge self-invoices?
Notification 04/2026-Central Tax extends e-invoicing to supplies received from unregistered persons where the recipient pays tax under reverse charge, and to import of services. It applies from 1 January 2027, to taxpayers who are already covered by e-invoicing.
What changes for post-supply discounts?
From 1 November 2026, the substituted Section 15(3)(b) no longer requires the discount to be agreed in advance or linked to specific invoices. The supplier issues a credit note under Section 34 and the recipient reverses the related input tax credit.
Is the ₹1,000 minimum refund limit removed?
Yes, for exports of goods made with payment of tax. Section 54(14) now removes the ₹1,000 minimum refund limit for those refunds from 1 November 2026.
When can my GST registration be suspended or cancelled for non-filing?
The new rules limit cancellation grounds to objective defaults, such as a monthly filer not filing for 6 continuous months or a quarterly filer missing 2 continuous tax periods. The automatic suspension and deemed cancellation process under Rules 21A and 22 starts from 1 April 2027.
Where can I read the official notifications?
The notifications are on the CBIC GST website (cbic-gst.gov.in) under Notifications, Central Tax, 2026. Please check the official text before acting.
Related reading: see our TDS/TCS rate chart for Tax Year 2026-27 and our accounting, GST and tax services.
Call +91-85888-99292 or email contact@metaccounts.in for a free consultation.
Based on ICAI’s GST Update 275 and published reports on Notifications 03/2026, 04/2026 and 05/2026-Central Tax dated 26 October 2026. Details may change, so please check the official notifications on the CBIC GST website before acting. This post is for general information and is not tax or legal advice.