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Taxation Central Ministry of Finance Central Goods and Services Tax Act, 2017

Mechanism for providing evidence of compliance of conditions of Section 15(3)(b)(ii) of the CGST Act, 2017 by the suppliers

26-Jun-2024 | Circular No.-212/6/2024-GST

Ministry of Finance has issued a circular on the Mechanism for providing evidence of compliance with conditions of Section 15(3)(b)(ii) of the CGST Act, 2017 by the suppliers. By virtue of this circular, till the time a functionality/ facility is made available on the common portal to enable the suppliers as well as the tax officers to verify whether the input tax credit attributable to discounts offered by the suppliers through tax credit notes has been reversed by the recipient or not, the supplier may procure a certificate from the recipient of supply, issued by the Chartered Accountant (CA) or the Cost Accountant (CMA), certifying that the recipient has made the required proportionate reversal of input tax credit at his end in respect of such credit note issued by the supplier. The CA/CMA certificate may include details of the credit notes, relevant invoice number, amount of ITC reversal in respect of each of the said credit notes along with the details of the FORM GST DRC-03/ return / any other relevant document through which such reversal of ITC has been made by the recipient. Such certificate issued by CA or CMA shall contain UDIN (Unique Document Identification Number). The supplier may procure an undertaking/ certificate from the recipient where the amount of tax (CGST+SGST+IGST and including compensation cess, if any) involved in the discount given by the supplier to a recipient through tax credit notes in a Financial Year is not exceeding Rs 5,00,000 (rupees five lakhs only).

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