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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
Circular No. 253/10/2025 – GST: Regarding withdrawal of circular No. 212/6/2024-GST.
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)
📚 Frequently Asked Questions (FAQs): Circular No. 253/10/2025 - GST
Q1. What is Circular No. 253/10/2025-GST?
Answer:
Circular No. 253/10/2025-GST withdraws Circular No. 212/6/2024-GST, which had prescribed a mechanism for suppliers to provide evidence of compliance with the conditions under Section 15(3)(b)(ii) of the CGST Act, 2017. As a result, the documentation procedure introduced through the earlier circular is no longer required. The withdrawal has been issued under Section 168(1) of the CGST Act to ensure uniform implementation of GST law.
Q2. Which circular has been withdrawn by CBIC?
Answer:
CBIC has withdrawn Circular No. 212/6/2024-GST dated 26 June 2024.
The withdrawn circular had explained how suppliers could demonstrate compliance with the conditions specified under Section 15(3)(b)(ii) relating to post-supply discounts. With Circular No. 253/10/2025-GST, that prescribed procedure is no longer applicable, although the statutory provisions of the GST law continue to remain in force.
Q3. Does this withdrawal mean Section 15(3)(b)(ii) has been removed from the CGST Act?
Answer:
No. This is one of the most common misunderstandings.
The circular withdraws only the administrative procedure prescribed for demonstrating compliance. It does not amend, delete, or dilute Section 15(3)(b)(ii) of the CGST Act. Businesses must still satisfy all legal conditions prescribed under the Act for claiming GST adjustments relating to eligible post-supply discounts.
Q4. What was the purpose of Circular No. 212/6/2024-GST?
Answer:
The earlier circular provided guidance on the mechanism for furnishing evidence that suppliers had complied with the conditions laid down in Section 15(3)(b)(ii) of the CGST Act.
Many businesses actually faced uncertainty regarding the type of documentation required during GST assessments. The circular attempted to standardise this process. However, CBIC has now decided to withdraw that prescribed mechanism.
Q5. What changes after the withdrawal of Circular No. 212/6/2024-GST?
Answer:
The most significant change is that the specific procedure prescribed by Circular No. 212/6/2024-GST is no longer mandatory.
In simple terms, taxpayers are no longer required to follow the documentation mechanism introduced through that circular. However, this does not relieve businesses from maintaining sufficient records to demonstrate compliance with the requirements of the CGST Act whenever necessary.
Q6. Does this circular affect GST treatment of post-supply discounts?
Answer:
No. The circular does not alter the GST treatment of post-supply discounts.
If you look at it practically, the law relating to valuation under Section 15(3)(b)(ii) remains exactly the same. Only the procedure prescribed by the earlier circular for evidencing compliance has been withdrawn. Businesses should therefore continue complying with the statutory conditions under the Act.
Q7. Should suppliers continue maintaining documentary evidence after this circular?
Answer:
Yes. Even though the prescribed mechanism has been withdrawn, maintaining proper documentation remains a sound compliance practice.
Businesses should retain agreements, credit notes, commercial correspondence, accounting records, and other supporting documents wherever discounts are claimed under Section 15(3)(b)(ii). Proper documentation can help resolve queries during GST audits or departmental scrutiny.
Q8. Why did CBIC withdraw the earlier circular?
Answer:
The circular itself does not provide detailed reasons for the withdrawal. It simply states that, in exercise of the powers under Section 168(1) of the CGST Act, the Board has withdrawn Circular No. 212/6/2024-GST to ensure uniform implementation of GST law.
Therefore, businesses should avoid assuming that the underlying legal requirements have changed merely because the procedural circular has been withdrawn.
Q9. Is this circular applicable to all GST taxpayers?
Answer:
The circular is particularly relevant for businesses that rely on post-supply discounts and need to comply with Section 15(3)(b)(ii) of the CGST Act.
Manufacturers, distributors, FMCG companies, pharmaceutical businesses, automobile dealers, and other sectors where incentive schemes or post-sale discounts are common should carefully review the impact of this withdrawal on their documentation processes.
Q10. What should businesses do after this clarification?
Answer:
Businesses should review their existing SOPs and remove references that require compliance with the withdrawn procedural circular. However, they should continue ensuring that every post-supply discount satisfies the conditions prescribed under Section 15(3)(b)(ii) of the CGST Act.
Related Resource:
GST Compliance: https://finodha.in/gst-compliance/
Q11. Does the withdrawal reduce GST compliance requirements?
Answer:
Not necessarily. The withdrawal removes a prescribed procedural mechanism but does not reduce the legal burden of proving eligibility under the GST law.
Let’s understand this with an example. If a supplier issues post-supply discounts through credit notes, the supplier may no longer be required to follow the withdrawn procedure, but must still maintain adequate records to establish that all statutory conditions are fulfilled if questioned by the tax authorities.
Download PDF: Circular No. 253/10/2025 - GST
More Information: https://taxinformation.cbic.gov.in/
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