This article provides a comprehensive format for issuing a Certificate of Input Tax Credit (ITC) Reversal by the recipient of goods or services in compliance with Section 34 and Section 15(3)(b) of the CGST/TNGST Act, 2017. It covers scenarios involving post-supply discounts and sales returns where ITC reversal is required.
The certificate confirms that the recipient has duly reversed the applicable ITC corresponding to credit notes issued by the supplier. It also incorporates references to the latest GST circulars, clarifying that obtaining a CA/CMA certificate is no longer mandatory.
Additionally, the document includes a detailed annexure format for reporting transaction-level ITC reversals, ensuring transparency and proper record-keeping. This format serves as a practical compliance tool for businesses to substantiate GST adjustments and avoid disputes with tax authorities.
CERTIFICATE OF ITC REVERSAL BY THE RECIPIENT OF GOODS AND SERVICES
(Refer Section 34 / Section 15(3)(b) of TNGST / CGST Act, 2017)
(TNGST Act, 2017 – Replace with Relevant State GST Act as Applicable)
Date: ………………
To
Supplier's Legal Name: ………………………………
Supplier's GSTIN: ……………………………
Supplier's Address: ……………………………
Subject: Confirmation of Reversal of Input Tax Credit (ITC) in respect of Credit Notes issued – Reg.
Dear Sir/Madam,
- We, M/s. [Recipient's Legal Name], having our principal place of business at [Full Address] and registered under GST bearing GSTIN [Recipient GSTIN], under the jurisdiction of [GST Office Details], do hereby certify that we have received credit notes issued by you during the Financial Year [FY], comprising:
Post-supply discounts (as per Section 15(3)(b) of the CGST Act, 2017) amounting to Rs. ______ (IGST Rs………….. CGST Rs………. SGST Rs…………); and
Sales returns (as per Section 34 of the CGST Act, 2017) amounting to Rs. ______ (IGST Rs………….. CGST Rs………. SGST Rs…………);
- We hereby confirm that the Input Tax Credit (ITC) attributable to such post-supply discounts has been duly reversed by us in compliance with the provisions of Section 15(3)(b)(ii) of the CGST Act, 2017.
OR / and
- We further confirm that the goods covered under the aforesaid sales return credit notes have been returned and the corresponding ITC has been duly reversed / not retained, as applicable.
(Strike off whichever is not applicable in case of OR)
- We further confirm that the above Input Tax Credit (ITC) reversals have been duly effected, the details of which are provided in the enclosed Annexure forming an integral part of this certificate.
- We understand that as per Circular No. 212/6/2024-GST dated 26.06.2024, a mechanism was prescribed wherein suppliers could obtain a certificate from a practicing Chartered Accountant / Cost Accountant as evidence of ITC reversal by the recipient. The said requirement has since been withdrawn vide Circular No. 253/10/2025-GST dated 01.10.2025. Accordingly, there is no mandatory requirement to furnish a CA/CMA certificate for this purpose.
- This certificate is issued to confirm compliance with the provisions of Section 34 / 15(3)(b) of the TNGST / CGST Act, 2017 and to establish that the tax effect has not been passed on to us by you for the relevant tax period.
- We hereby declare that the above information is true, correct, and complete to the best of our knowledge and belief.
Yours faithfully,
For [Recipient's Legal Name]
Authorized Signatory: ______________________
Name: ______________________
Designation: ______________________
Date: ______________________
Place: ______________________
Annexure to Certificate
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Name of the Registered Person |
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GST Number of the Registered Person |
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Jurisdiction of the Registered Person |
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Reversal of Input Tax Credit (ITC) in respect of Credit Notes issued |
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Supplier GSTIN |
Credit Note Number |
Credit Note Date |
Taxable Value in Credit Note |
CGST |
SGST |
IGST |
Original Invoice Number |
Original Invoice Date |
Document through which such credit is reversed |
Month in which such credit is reversed |
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Total |
- |
- |
- |
- |
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for Seal |
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Place: |
Name: |
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Date: |
Designation: |
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Disclaimer
The author has tried to avoid mistakes, but doesn't promise that the information in this document is complete, correct, or up to date. The author isn't responsible for any problems, losses, or damages caused by using this information. Readers are encouraged to consult with qualified professionals to obtain advice tailored to their individual circumstances.
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