SALIENT FEATURES BUDGET 2026-27 SALES TAX ACT 1990 The proposed budgetary measures pertaining to Sales Tax for FY 2026-27 are: 1. RELIEF MEASURES i. Grant of exemption from sales tax to magazines ii. Extension in exemption on import of CKD for electric vehicles till 30.06.2027 iii. Enhancement in scope of exemption on parts of aircrafts for import and lease by M/s PIACL iv. Withdrawal of exemption of sales tax on family planning devices v. Abolition of tampon tax vi. Exemption of sales tax to boost strategic investment in shipping vii. Exemption to strategic imports for SCO summit and counter terrorism viii. Exemption of sales tax on import of capital goods for upgradation and overhaul of existing refineries. ix. Addition of new S. No. in the Sixth Schedule x. Extension in date of sunset for electric vehicles till 30.06.2027 2. REVENUE MEASURES i. Expansion of Third Schedule to ensure payment of sales tax at consumer price by the manufacturers at manufacturing stage ii. Withholding of sales tax by the toll manufacturers from unregistered buyers iii. Enhancement in scope of withholding sales tax by AOPs and individuals from unregistered persons iv. Imposition/recovery of 3% VAT from the manufacturers if the imported raw material is sold in same state v. Rationalization of amount of penalty on certain offences and inclusion of three more offences in section 33 for imposition of penalty 3. STREAMLINING MEASURES i. Insertion definition of advance receipt invoice, algorithmic settlement mechanism, electronic invoicing system, national faceless centre and production monitoring system ii. Streamlining of definition tier-1 retailers. Inclusion of retailer having two hundred million or more annual turnover, in the category of tier-1 retailer iii. Insertion of explanation to clarify the time of delivery of goods to the recipient iv. Grant of power to Board to outsource the function of valuation of goods v. Addition of new proviso in section 6 to impose tax on steel sector on the basis of monthly electricity units consumed vi. Addition of new proviso in section 8B to enhance or decrease limit of input tax adjustment vii. Insertion of proviso in section 9 for adjustment…