CBIC Withdraws Circular on CA/CMA Certificate for ITC Reversal
The CBIC has withdrawn Circular No. 212/6/2024-GST which had required recipients of post-supply discounts to furnish a CA/CMA certificate confirming proportionate Input Tax Credit (ITC) reversal. This earlier certificate was treated as valid evidence of compliance under Section 15(3)(b)(ii) of the CGST Act, 2017. With this withdrawal, such certification is no longer required, though the substantive conditions under Section 15(3)(b) remain in force – i.e., discounts must be pre-agreed, invoice-linked, and ITC proportionately reversed by the recipient.
This step brings compliance relief, reducing procedural burden and litigation risk. Notably, JSW Steel had challenged the earlier circular before the Delhi High Court, which had issued notice. Businesses should ensure ITC reversals are carried out correctly as per law, but no external CA/CMA certification is needed anymore