Key Highlights of GST Circular No. 112/31/2019 Withdrawal of Circular No. 105/24/2019-GST
<p>The Government of India, through the <strong>Central Board of Indirect Taxes and Customs (CBIC)</strong>, has issued <strong>Circular No. 112/31/2019-GST</strong> on <strong>October 3, 2019</strong>. This circular officially <strong>withdraws</strong> the previously issued <strong>Circular No. 105/24/2019-GST</strong>, dated <strong>June 28, 2019</strong>.</p><h4><strong>Why Was Circular 105 Withdrawn?</strong></h4><ul><li>Circular No. <strong>105/24/2019-GST</strong> provided <strong>clarifications on post-sale discounts</strong> and their treatment under <strong>GST</strong>.</li><li>However, the industry and trade stakeholders raised <strong>numerous concerns</strong> and <strong>apprehensions</strong> about the <strong>implications</strong> of the clarifications provided in that circular.</li><li>To ensure <strong>uniformity in the implementation</strong> of GST laws across different regions, CBIC has decided to <strong>withdraw Circular 105 completely (ab-initio)</strong>.</li></ul><h4><strong>Implications of the Withdrawal</strong></h4><ol><li><strong>Post-Sales Discount Treatment Remains Unchanged</strong>: Since Circular 105 is withdrawn, businesses must now follow <strong>the original provisions of the CGST Act, 2017</strong> regarding post-sales discounts.</li><li><strong>Clarity Expected in Future</strong>: The withdrawal suggests that CBIC may <strong>issue fresh clarifications</strong> on this matter to address industry concerns properly.</li><li><p><strong>Trade Notices to be Issued</strong>: The circular requests GST field offices to <strong>publicize</strong> this decision so that businesses and stakeholders are aware.</p><p><a href="https://cms.plasament.com/storage/chirag-singla/circular-cgst-112.pdf">circular-cgst-112</a><br> </p></li></ol>