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Background and Context

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 253/10/2025-GST dated 1st October 2025, withdrawing Circular No. 212/6/2024-GST dated 26th June 2024.

The earlier circular had provided clarifications and a procedural mechanism for suppliers to furnish evidence of compliance with the conditions of Section 15(3)(b)(ii) of the Central Goods and Services Tax Act, 2017 (CGST Act).

This section deals with post-supply discounts — where the supplier may reduce the taxable value of a supply if:

The discount was established through an agreement before or at the time of supply, and
The recipient has reversed proportionate Input Tax Credit (ITC) corresponding to such discount.

The 2024 circular prescribed how suppliers should demonstrate compliance with these requirements.

What Was the Withdrawn Procedure?

Circular No. 212/6/2024-GST (dated 26th June 2024) had introduced the following compliance mechanism under Section 15(3)(b)(ii):

Recipient’s Declaration / Certificate:
The supplier was required to obtain a certificate or declaration from the recipient of goods or services confirming that the recipient had reversed the proportionate ITC corresponding to the post-supply discount.
Record Maintenance:
The supplier had to retain this certificate/declaration as documentary proof of compliance with the conditions of Section 15(3)(b)(ii).
Verification During Audit:
The supplier was expected to produce this evidence during departmental audits, assessments, or scrutiny proceedings to substantiate that the taxable value had been correctly reduced.

This procedure was meant to ensure uniformity in evidencing compliance but was later found to create additional administrative burden on taxpayers and compliance complexity for businesses.

The New Circular: Simplification and Withdrawal

To bring uniformity and ease of doing business, CBIC has now withdrawn Circular No. 212/6/2024-GST.
Henceforth, no separate evidentiary procedure as prescribed earlier will be required for proving compliance with Section 15(3)(b)(ii).

This simplifies the process and removes the requirement for suppliers to collect and maintain declarations from recipients regarding ITC reversals.

Key Highlights of Circular No. 253/10/2025-GST

Withdrawal of Earlier Procedure:
The procedure laid down in Circular No. 212/6/2024-GST stands withdrawn with immediate effect.
Uniform Implementation:
Issued under Section 168(1) of the CGST Act, the withdrawal aims to ensure uniformity in the application of law across field formations.
No More Documentation Burden:
Suppliers are no longer required to obtain or maintain declarations/certificates from recipients as proof of compliance.
Field Instructions:
CBIC has directed officers to issue trade notices to inform taxpayers about this change and to bring any implementation difficulties to the Board’s notice.

Implications for Taxpayers

Simplified Compliance:
Businesses will now have fewer procedural requirements related to post-supply discounts.

Ease of Doing Business:
Reduces paperwork and administrative coordination between suppliers and recipients.

Uniformity Across Jurisdictions:
Ensures consistent interpretation and enforcement of Section 15(3)(b)(ii) throughout India.

Full Text of Circular No. 253/10/2025-GST

Circular No. 253/10/2025 – GST

F. No. CBIC-20001/3/2025-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing

North Block, New Delhi
Dated the 1st October, 2025

To
The Principal Chief Commissioners / Chief Commissioners (All)
The Principal Director Generals / Director Generals (All)

Madam/ Sir,

Subject: Withdrawal of circular No. 212/6/2024-GST dated 26th June, 2024 – reg.

Kind attention is invited to circular No. 212/6/2024-GST dated 26th June, 2024 wherein clarifications were given in relation to mechanism for providing evidence of compliance of conditions of Section 15(3)(b)(ii) of the CGST Act, 2017 by the suppliers.

In order to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168(1) of the Central Goods and Services Tax Act, 2017, hereby withdraws, circular No. 212/6/2024-GST dated 26th June, 2024. Therefore, the procedure prescribed vide the aforesaid circular for providing evidence of compliance of conditions of Section 15(3)(b)(ii) shall not be required.

It is requested that suitable trade notices may be issued to publicize the contents of this Circular.

Difficulty, if any, in implementation of this circular may please be brought to the notice of the Board.

Yours faithfully,

(Gaurav Singh)
Commissioner (GST)

Conclusion

The CBIC’s withdrawal of the 2024 circular marks a significant rationalization of compliance procedures under GST.
Taxpayers engaged in post-supply discount arrangements no longer need to collect declarations or certificates from customers as proof of ITC reversal.

This move promotes simplification, uniformity, and ease of doing business, aligning with the broader policy direction under GST reforms.