{"id":6206,"date":"2025-10-04T17:55:03","date_gmt":"2025-10-04T12:25:03","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=6206"},"modified":"2025-10-04T17:55:03","modified_gmt":"2025-10-04T12:25:03","slug":"cbic-scraps-circular-on-itc-reversal-for-post-sale-discounts","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/cbic-scraps-circular-on-itc-reversal-for-post-sale-discounts","title":{"rendered":"CBIC Scraps Circular on ITC Reversal for Post-Sale Discounts"},"content":{"rendered":"<p><span class=\"TextRun SCXW223238423 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"none\"><a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/104010000000113160\/circular-on-compliance-evidence-requirement-for-reversal-of-itc-by-the-recipient-in-post-sale-discount-withdrawn-by-cbic\"><span class=\"NormalTextRun SCXW223238423 BCX0\" data-ccp-parastyle=\"Body-All Documents\" data-ccp-parastyle-defn=\"{&quot;ObjectId&quot;:&quot;f54e3151-7552-5563-bc14-dd1598e94375|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[469775450,&quot;Body-All Documents&quot;,201340122,&quot;2&quot;,134234082,&quot;true&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocuments&quot;,335572020,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777844,&quot;Book Antiqua&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,335559740,&quot;280&quot;,201341983,&quot;1&quot;,335559739,&quot;0&quot;,335551550,&quot;6&quot;,335551620,&quot;6&quot;,469777929,&quot;Body-All Documents Char&quot;,201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777843,&quot;Calibri&quot;,201341986,&quot;1&quot;,268442635,&quot;24&quot;]}\" data-ccp-parastyle-linked-defn=\"{&quot;ObjectId&quot;:&quot;d1cb5994-2cf1-5883-8af4-faa182bd9769|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777843,&quot;Calibri&quot;,469777844,&quot;Book Antiqua&quot;,201341986,&quot;1&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,268442635,&quot;24&quot;,469775450,&quot;Body-All Documents Char&quot;,201340122,&quot;1&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocumentsChar&quot;,335572020,&quot;1&quot;,134231262,&quot;true&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,469777929,&quot;Body-All Documents&quot;,469778324,&quot;Default Paragraph Font&quot;]}\">Circular No. <\/span><span class=\"NormalTextRun SCXW223238423 BCX0\" data-ccp-parastyle=\"Body-All Documents\">253\/10\/2025-GST<\/span><\/a><span class=\"NormalTextRun SCXW223238423 BCX0\" data-ccp-parastyle=\"Body-All Documents\">, Dated 01-10<\/span><span class=\"NormalTextRun SCXW223238423 BCX0\" data-ccp-parastyle=\"Body-All Documents\">-2025<\/span><\/span><span class=\"EOP SCXW223238423 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:280}\">\u00a0<\/span><\/p>\n<h2>1. Introduction<\/h2>\n<p>The Central Board of Indirect Taxes and Customs (CBIC) has recently issued a circular announcing the withdrawal of Circular No. 212\/6\/2024-GST, dated 26-06-2024. The withdrawn circular had earlier provided clarifications regarding the mechanism for furnishing evidence of compliance with the conditions under Section 15(3)(b)(ii) of the CGST Act, 2017, specifically in relation to post-sale discounts and reversal of Input Tax Credit (ITC) by recipients.<\/p>\n<h2>2. Background of the Withdrawn Circular<\/h2>\n<p>The earlier circular sought to clarify the process by which taxpayers could demonstrate compliance with the conditions required for ITC reversal on account of post-sale discounts. It outlined a prescribed mechanism for furnishing such evidence, which aimed to ensure uniformity across field formations. However, over time, industry stakeholders expressed concerns regarding the practical difficulties and additional compliance burdens posed by the procedure.<\/p>\n<h2>3. Withdrawal of the Mechanism<\/h2>\n<p>Through the latest circular, the CBIC has decided to withdraw the mechanism prescribed in Circular No. 212\/6\/2024-GST. As a result, taxpayers will no longer be required to follow the procedure earlier prescribed for furnishing evidence of compliance under Section 15(3)(b)(ii). This move simplifies compliance obligations and removes an additional procedural layer for businesses dealing with post-sale discount scenarios.<\/p>\n<h2>4. Advisory to Field Formations<\/h2>\n<p>The CBIC has also directed field formations to ensure uniformity in implementation of this withdrawal across jurisdictions. Further, they have been instructed to issue trade notices to widely publicise the withdrawal so that businesses are adequately informed. Additionally, any practical difficulties encountered during the implementation of this change are to be promptly reported to the Board for further review and necessary clarifications.<\/p>\n<h2>5. Conclusion<\/h2>\n<p>In conclusion, the withdrawal of Circular No. 212\/6\/2024-GST marks an important step toward reducing compliance complexity for taxpayers. By eliminating the mandatory furnishing of evidence for ITC reversal in post-sale discounts, the CBIC has simplified the GST framework in this area. This decision is expected to provide much-needed relief to businesses, foster uniformity in tax administration, and improve ease of doing business under the GST regime.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Circular No. 253\/10\/2025-GST, Dated 01-10-2025\u00a0 1. Introduction The Central Board of Indirect&hellip;<\/p>\n","protected":false},"author":16,"featured_media":6217,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,62,189],"tags":[],"class_list":["post-6206","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-statutory-scope"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CBIC Scraps Circular on ITC Reversal for Post-Sale Discounts<\/title>\n<meta name=\"description\" content=\"CBIC withdraws circular on compliance evidence for ITC reversal in post-sale discounts, easing GST procedures and reducing compliance burden.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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