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Finance Act 2026 Could Release ₹4,000 Crore in GST Refunds
Finance Act 2026 amends GST law, potentially releasing ₹4,000 crore in refunds. It redefines intermediary services, impacting cross-border transactions and export eligibility.
💡 Key Fact
The Finance Act 2026 may release ₹4,000 crore in GST refunds, particularly for Indian intermediaries.
⚡ Quick Answer
The Finance Act 2026 could unlock ₹4,000 crore in GST refunds by redefining intermediary services and their place of supply.
What's Happening
- Intermediary definition change — The Act changes the definition of 'intermediary services'.
- Place of supply rule — It removes the rule that the service location is the supplier's.
- Now, export of services — Cross-border services can now qualify as exports if conditions are met.
Common Mistakes to Avoid
- Not reversing ITC on post-supply discounts
- Ignoring recipient location for supply place
Source: A2Z Taxcorp LLP
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