Circular No. – 253/10/2025 – GST dated October 01, 2025
Applicable Act/Rule – Central Goods and Services Tax Act, 2017
Circular No. 212/6/2024-GST dated June 26, 2024 had prescribed a procedure requiring suppliers to obtain and maintain evidence, such as CA/CMA certificates or recipient undertakings, to prove compliance with conditions under section 15(3)(b)(ii) relating to post-supply discounts. This mechanism was introduced as a temporary measure to address the lack of a portal-based facility for verification
The CBIC has now withdrawn Circular No. 212/6/2024-GST with immediate effect. Accordingly, the earlier prescribed procedure for providing evidence of compliance under section 15(3)(b)(ii) is no longer required.
Suppliers will not be obliged to follow the certification or documentation mechanism specified under the withdrawn circular. However, the underlying statutory requirement remains unchanged—recipients must reverse ITC where applicable for discounts to be excluded from taxable value. Field formations have been instructed to ensure uniform implementation and issue trade notices for wider dissemination.
Link – Withdrawal of Circular No. 212/6/2024-GST on post-supply discount compliance
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