The government may introduce several amendments to the GST rules in the Finance Bill 2026. It aims to simplify GST compliance and increase liquidity for businesses. Government sources said the Finance Bill 2026 may include proposals for fast-track registration, 90% automatic refund under inverted duty structure (IDS) and simplification of some other rules.
Proposals for legal amendments will be included in the next budget
“The government will propose amendments to these laws in the upcoming budget,” a senior government official said. He further said that the amendments are still being finalized. The government’s focus is on speedy registration and refund settlement. A proposal of 90% provisional refund under inverted duty structure is also being included.
Focus on GST’s fast-track registration system
A risk-based fast-track registration system is in place for low-risk taxpayers. This allows new GST registration to be approved within three days of Aadhaar and PAN verification. Its objective is to eliminate delays in GST registration. However, high-risk taxpayers are being intensively screened using data analytics. The system has come into effect from November 1, but the necessary amendments to the law have not yet been made.
Benefit from automatic 90% refund
Officials said the government’s focus is on faceless and technology-based processes. This will reduce human interference. The Finance Bill may include legislation providing for automatic 90% refund of input tax credit. If implemented, taxpayers will automatically receive 90% of their refund claim after system-based verification. The remaining 10% will be paid after certain necessary verifications.
Increased liquidity for manufacturers and exporters
The government has been receiving complaints from the industry regarding delays in processing refunds under IDS. The government believes that introducing advance refunds will increase liquidity for manufacturers and exporters. Proposals for necessary amendments in the law will be included in the Finance Bill, which will be presented in Parliament for approval.