Amendment of section 34
Section 126 of the Finance Act, 2025 deals with amendment of section 34. Amendment of section 34. 126. In section 34 of the Central Goods and Services Tax Act, in sub-section (2), for the proviso, the following proviso shall be substituted, namely:— "Provided that no reduction in output tax liability of the supplier shall be permitted, if the— (i) | input tax credit as i The Act was enacted on 16 Aug 2025.
Amendment of section 34.
126. In section 34 of the Central Goods and Services Tax Act, in sub-section (2), for the proviso, the following proviso shall be substituted, namely:—
"Provided that no reduction in output tax liability of the supplier shall be permitted, if the—
Section 126, The Finance Act, 2025 (Act 7 of 2025).
(i) input tax credit as is attributable to such a credit note, if availed, has not been reversed by the recipient, where such recipient is a registered person; or (ii) incidence of tax on such supply has been passed on to any other person, in other cases.".
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 1
Questions about Section 126
What does Section 126 of the Finance Act deal with?
Section 126 of the Finance Act is headed "Amendment of section 34". Amendment of section 34. 126. In section 34 of the Central Goods and Services Tax Act, in sub-section (2), for the proviso, the following proviso shall be substituted, namely:— "Provided that no reduction in output tax liability of the supplier shall be permitted, if the— (i) | input tax credit as i
How do I find court cases under Section 126 of the Finance Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2025 126, section 126 Finance Act 2025, section 126 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 126 of the Finance Act, and has it changed?
Its own text turns on Central Goods and Services Tax Act 34 (Credit and debit notes), section 34 (Amendment of section 115VT), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.
When was Section 126 of the Finance Act enacted?
Section 126 of the Finance Act, cited as Finance Act 2025 126, was enacted on 16 Aug 2025 as Act 7 of 2025. It is in force as at the date shown on this page.
Other sections of this Act
- First Schedule. First Schedule10059 words
- 2. Income-tax8952 words
- Third Schedule. Third Schedule8533 words
- 146. Amendment of Act 28 of 2016957 words
- 50. Amendment of section 158BB868 words
- 6. Amendment of section 10825 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument. This page is not a substitute for legal advice.