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GS🚨 Big GST Relief on Discounts – Circular No. 251/08/2025-GST 🚨
For years, wholesalers, stockists, and distributors faced a major issue – Secondary/Post-Sale Discounts.
Department used to force ITC reversal whenever financial or commercial credit notes were issued after supply.
Now finally, CBIC has clarified via Circular No. 251 (dated 12th Sept 2025):
✅ No ITC reversal required for recipients when discounts are adjusted through commercial/financial credit notes.
✅ Post-sale discounts between manufacturer & dealer will not be treated as “consideration” for extra services.
✅ Only if the dealer provides specific promotional services (advertising, co-branding, campaigns etc.), GST will apply separately.
👉 This is a huge relief for FMCG, Pharma, Automobile distributors & retailers where such discounts are very common.
💡 After 8 years of confusion, finally this clarity puts an end to unnecessary disputes and ITC reversals.
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