Withdrawal of Circular 212 on Post Sale Discount
CBIC has issued Circular No 253/10/2025 for Withdrawal of Circular 212 on Post Sale Discount. This withdrawal is based on the recommendation of the GST Council.
As per the requirement of Circular No 212/06/2024, the supplier had to collect the declarations/ CA-CMA certificates from recipients confirming ITC reversal against the credit note issued. Now, as the Circular No 253/10/2025 has been issued to withdraw the procedure mentioned in Circular 212, there is no such requirement to collect physical decalarations.
The Main reason for withdrawing this circular is that section 15(3)(b) has been amended, and the government has also updated section 34 (proposed in Budget 2025, applicable from 01-10-2024), which directly links credit notes with ITC reversal by recipients. Now there is clarity, which nullifies the impact of the circular 212/06/2024.
Moreover, due to a change in IMS (as pending action allowed from the October 2025 tax period), the recipient can keep the credit note pending or can reject it; due to this, now the supplier cannot reduce the liability in GSTR-3B by raising credit notes until the recipient accepts the same. So it results in a more real-time compliance burden.
https://taxinformation.cbic.gov.in/view-pdf/1003292/ENG/Circulars
Download PDF of Circular No 253/10/2025
