TaxTMI 
TaxTMI 
TaxTMI 
Financial Year 2026-27 growth estimates face considerable down side risks on account of West Asia crises. The growth projection of 7.2% to 7.4% may also take a hit. OECD has also lowered India's growth forecast to 6.1% for FY 2027.
The Finance Act, 2026 has been enacted on 30.03.2026 with the assent of President as Act No. 4 of 2026. The Provisions relating to CGST and IGST as proposed in the Finance Bill, 2026 are thus enforced as per scheme of law. The amendments are in sections 15, 34, 54 and 101A of CGST Act, 2017 and section 13(8) (b) of IGST Act, 2017 (w.e.f. 30.03.2026). CBIC has also taken certain other steps for facilitating trade and commerce for exporters / importers.
During the passage of Finance Bill, 2026, the Finance Minister has started in the Parliament that MoF has not conducted any formal study on the inflationary implications of GST rate rationalization done in September, 2025.
CBIC has operationalised comprehensive reforms for E-commerce exports and courier trade to enhance ease of doing business w.e.f. 01.04.2026. These reforms include the complete removal of the Rs. 10 lakh value cap per consignment on courier exports, the introduction of a streamlined framework for handling returned and rejected parcels and a legally backed Return to Origin (RTO) mechanism for uncleared shipments, aimed at enhancing ease of doing business, reduce logistics inefficiencies and strengthen India's global export competitiveness, particularly for MSMEs, artisans and start-ups.
Ministry of Finance has notified GST Settlement of Funds Rules, 2026 to come into force from 01.04.2026. These relate to utilization and apportionment of Integrated tax between Centre (integrated tax) and state (State Tax) or Centre (Integrated Tax) and Centre (Union Territory Tax).
In yet another development, Central Government has reduced special excise duties on petrol and diesel by Rs. 10 in the backdrop of ongoing middle east war. The total central excise duty for petrol is down from Rs. 21.90 to Rs. 11.90 per liter and from Rs. 17.80 to Rs.7.80 liter for diesel.
On GSTAT front, Central Government has appointed vice Presidents to various state benches. The appeal filling is also gradually picking up.
GST collection for March, 2026 have been announced. Total gross GST collection has crossed Rs. 2 lakh crore (Rs. 2,00,064 crore) reflecting a growth of 8.8% on YoY basis (March 2025 - Rs.1,83,845 crore). Net GST collection is up by 8.2% to Rs. 1,77,990 crore as against Rs. 1,64,445 crore in March, 2025. For full FY 2025-26, gross GST collections have grown by 8.3% on YoY basis to 22.27 lakh crore. Tax collection in March of every year is relatively higher because of annual closing and booking of business in the relevant year only.
Finance Act, 2026 enacted
- Finance Bill, 2026 was passed in the Lok Sabha on 25th March, 2026 and has been enacted as Finance Act, 2026 as Act No. 4 of 2026 on receiving the President's assent on 30th March, 2026 and Notification issued in the Gazette of India.
- Finance Act, 2026 has been enacted on Monday, 30th March, 2026 as Act No. 4 of 2026 to give effect to the financial proposals of the Central Government for the FY 2026-27.
- The provisions relating to GST are contains in Section 153 and 157 of the Finance Act, 2026.
- Accordingly, following amendments shall come into force from dates mentioned against each such change in the following table:
Section of Finance Act, 2026 | Section of GST Act | Amendment relating to | In force w.e.f. |
Valuation of post supply discounts | Notified date | ||
Credit notes for discount | Notified date | ||
Provisional refund for inverted duty structure | Notified date | ||
National Appellate Authority for Advance Ruling | 1st April, 2026 | ||
Place of supply for intermediary services | 30th March, 2026 |
[Source: Gazette of India No. (CG-DL-E3103L026-271439) dated 30.03.2026]
GST Settlement of Funds Rules, 2026
- Ministry of Finance has notified GST Settlement of Funds Rules, 2026 in terms of Powers u/s 164 read with 53 and 53A of CGST Act, 2017 and section 17, 17A,18 and 22 of IGST Act, 2017.
- These rules are in suppression of GST Settlement of Funds Rules, 2017
- The Rules define cross utilization of credit, Government, input tax credit, registered person, State accounting authority etc.
- These rules aim to reduce revenue mismatches delays and strengthen data-driven tax administration.
- The major features, inter alia, relate to standardised reporting system, monthly settlement mechanism and automated & system-driven process.
- The adjustment cover refunds, reversals, ineligible ITC, demands and corrections.
- There rules provide for:
- Electronic transmission of reports
- Report of cross-utilization and apportionment of integrated tax between centre and state or centre and Union Territory.
- Report of cross-utilization and appointment of integrated tax between centre (integrated tax) and centre (Central Tax)
- Report relating to apportionment of integrated tax recovered against demand and admitted amount deposited at the time of filing appeal between Centre (CT) and State (ST) or Centre (UTT)
- Report relating to apportionment of integrated tax amount, where place of supply could not be determined or taxable person making such supply is not identifiable, between Centre (CT) and State (ST) or Centre (UTT)
- Report relating to reduction of amount to be apportioned to Centre (CT) and State (ST) or Centre (UTT) due to integrated tax apportioned earlier but subsequently refunded.
- Report relating to recovery of various taxes from refunds and transfer of amount within cash ledger.
- Complicated settlement report for each State, Union Territory and for Centre.
- These rules also prescribe manner of calculation, accounting entries and procedure for resolution of any discrepancy as per Standard Operating Procedure (SOP).
- These rules shall come into force retrospectively w.e.f. 1st April, 2025.
(Source: MoF Notification No. (F.No. S-31011/96/2025-ST-I-
DoR-GSR 225 (E) dated 30.03.2026)
- GST collection for the month of March, 2026 has crossed Rs. 2 lakh crore as per data released by GSTN.
- Total gross GST collection was recorded at Rs. 2,00,064 crore, up by 8.8% as against Rs. 1,83,845 crore on March, 2025.
- Total net GST collection stood at Rs. 1,77,990 crore, up by 8.2% on YoY basis from Rs. 1,64,445 crore (net of refunds)
- Total refunds (domestic + exports) amount to Rs. 22,074 crore with growth of 13.08% against Rs. 19,400 crore in March, 2025.
- Net compensation cess revenue was recorded at (-) 177 crore. The cess continues only as transitory arrangement till entire loan and interest liability is discharged.
- State-wise collection shows a mixed trend with industrial states posting positive growth while other being in reel.
- States that recorded a positive GST revenue growth as per post-settlement SGST included Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Gujarat, Maharashtra, Karnataka, Kerala, Tamil Nadu, Telangana and Andhra Pradesh, among others.
- States that recorded a negative GST revenue growth as per post-settlement SGST included Jammu and Kashmir, Chandigarh, Delhi, Arunachal Pradesh, Meghalaya, Assam.