The Central Board of Indirect taxes and Customs (‘CBIC’) has issued Circular No. 253/10/2025 – GST dated 01st October 2025 (‘Circular’) regarding the withdrawal of Circular No. 212/6/2024-GST dated 26th June 2024 (‘Withdrawn Circular’), which earlier prescribed the procedure for furnishing evidence of compliance with Section 15(3)(b)(ii) of the CGST Act, 2017 (regarding post-supply discounts).
Following procedure was prescribed in the Withdrawn Circular:
- Currently, there is no system functionality available on GST portal to enable a supplier or tax officers to verify reversal of ITC by the recipient where a Tax Credit Note (TCN) is issued by the supplier
- Till the time an appropriate mechanism is notified, the following guidelines should be followed:
- Supplier should produce a CA/ CMA certificate bearing Unique Document Identification Number certifying that the recipient has carried out ITC reversal
- Alternatively, where tax component pertaining to such TCN is not exceeding INR 5 lakhs, seller may produce an undertaking/ certificate from the recipient that ITC has been reversed
Further, the key points as provided in the Circular are summarized hereinbelow:
- The procedure outlined in the Withdrawn Circular is no longer required to be followed by suppliers
- This step has been taken to ensure uniform implementation of GST provisions across all field formations
- It is requested to issue suitable trade notices to publicize the content of the Circular.