CBIC Withdraws Circular on Evidence Requirement for Supplier Discounts under GST



Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has withdrawn an earlier circular that outlined the evidence required from suppliers for post-supply discounts under GST. This means businesses will no longer need to follow the specific procedure detailed in the previous guidance. The CBIC aims to create a more uniform application of GST rules and reduce the documentation burden for suppliers offering discounts.

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

The withdrawn circular had provided guidelines regarding the mechanism for suppliers to furnish evidence of compliance with conditions specified under Section 15(3)(b)(ii) of the Central Goods and Services Tax (CGST) Act, 2017, particularly in relation to post-supply discounts.

GST: CBIC Withdraws Circular on Supplier Discount Evidence

With this withdrawal, suppliers will no longer be required to follow the procedure laid down in the earlier circular for providing such evidence. The CBIC has clarified that this step has been taken to ensure uniformity in the implementation of GST provisions across field formations.

The Board has advised all Chief Commissioners and Director Generals to issue suitable trade notices for wider dissemination of this change. Businesses and taxpayers are encouraged to take note of this development, as it eases compliance requirements for suppliers offering discounts.

This move is expected to reduce documentation burden and provide clarity in the treatment of discounts under GST.

Official copy of the circular has been attached

FAQ :

The CBIC has withdrawn Circular No. 212/6/2024-GST, which provided guidelines on the evidence required for supplier discounts.

The withdrawn circular detailed the mechanism for suppliers to provide evidence of compliance with conditions for post-supply discounts under Section 15(3)(b)(ii) of the CGST Act.

Suppliers are no longer required to follow the specific procedure outlined in the previous circular for furnishing evidence of compliance related to discounts.

The withdrawal is intended to ensure uniformity in the implementation of GST provisions across all field formations.

This change is expected to ease compliance requirements, reduce the documentation burden, and provide greater clarity in the treatment of discounts under GST.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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