GST refunds get faster from 1 November 2026. Two documents change the law and the rules together: CBIC Notification No. 03/2026-Central Tax brings section 155 of the Finance Act, 2026 into force, and the CGST (Amendment) Rules, 2026 (Notification No. 05/2026-Central Tax) change rules 89 to 92. Both are dated 26 October 2026.

What changed

• The 90% provisional refund for input tax credit stuck under an inverted duty structure is now written into section 54(6). Until now it rested on CBIC Instruction No. 06/2025-GST, which has allowed it for claims filed since 1 October 2025.
• The ₹1,000 minimum in section 54(14) no longer applies to refunds of tax paid on goods exported with payment of tax.
• An application must be acknowledged, or a deficiency memo issued, within 10 days instead of 15. If neither happens, the claim is deemed acknowledged.
• The portal then issues the provisional refund order (RFD-04) within 3 working days, using a system risk check.
• Inverted duty refunds now count input services too. This applies to credit on input services taken on or after 1 November 2026.

Who is affected

• Manufacturers and traders whose input tax rate is higher than their output rate.
• Exporters, including small exporters with low-value refunds.

From 1 December 2026, claims for unutilised credit and for zero-rated supplies made with payment of tax must also include a declaration that the applicant has not been prosecuted for tax evasion above ₹250 lakh in the past five years.

Sources: Notification 05/2026-Central Tax (Gazette of India), TaxO.