Chandigarh, August 10, 2026 (Yes Punjab News)
The Punjab Legislative Assembly on Monday passed the Punjab Goods and Services Tax (PGST) Amendment Bill, 2026, aimed at simplifying GST procedures, reducing litigation and improving liquidity for traders, exporters and other taxpayers in the state.
The Bill was moved by Punjab Finance and Excise and Taxation Minister Harpal Singh Cheema, who said the amendments were designed to promote voluntary compliance and remove procedural hurdles faced by the business and industry sectors.
“The proposed amendments to the PGST provisions are designed to fundamentally support our trade and industry sectors by removing procedural bottlenecks, improving liquidity, and easing the overall compliance burden on taxpayers,” Cheema said.
Among the key changes are amendments to Sections 15 and 34 relating to post-sale discounts. Under the amended provisions, suppliers will be able to exclude eligible post-sale discounts from the value of supply through credit notes without being required to have a prior agreement with the recipient.
The amendment also permits credit notes for post-sale discounts offered for any commercial reason, providing greater flexibility to businesses in accounting for trade discounts and making the adjustment process simpler for taxpayers.
The legislation also provides relief under Section 54 by extending the facility of a 90 per cent provisional refund of Input Tax Credit (ITC) in cases involving an inverted duty structure.
Another significant change removes the earlier ₹1,000 minimum threshold for refunds of Integrated Goods and Services Tax (IGST) paid on exports. Exporters will consequently be able to claim such refunds even when the amount is below ₹1,000.
Cheema said the measures would help improve working capital availability and provide financial relief to exporters and other taxpayers.
“These carefully crafted changes are expected to significantly improve working capital liquidity and deliver much-needed financial relief to exporters and various other taxpayers throughout Punjab,” he said.
The state government said the amendments are intended to create a more business-friendly GST environment by reducing compliance-related difficulties and encouraging taxpayers to comply voluntarily.
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