GST: No ITC Claimed, No Reversal Required - Certificate of Non-Availment of Input Tax Credit by the Recipient of Goods

COVER NOTE / PREFACE TO CERTIFICATE OF NON-AVAILMENT OF ITC

This note is issued as an explanatory preface to the Certificate of Non-Availment of Input Tax Credit (ITC) and Non-requirement of ITC Reversal under Section 34 of the CGST Act, 2017, furnished by the recipient of goods for GST compliance, audit verification, and other statutory or departmental purposes.

The certificate confirms that no Input Tax Credit has been availed, utilized, or retained by the recipient in respect of supplies for which credit notes have been issued by the supplier. It further establishes that, since no ITC was originally availed on such supplies, there is no requirement for reversal of ITC under the provisions of the GST law.

By way of illustration, in a typical transaction, goods may be dispatched by the supplier on 10.06.2026 along with a valid e-invoice and e-way bill, and the supply is duly reported in GSTR-1 as an outward taxable supply, which is reflected in the supplier's sales table of GSTR-1 (automatically, based on e-invoice/e-way bill reporting, wherever applicable). Subsequently, where the goods are rejected or not accepted by the recipient, the transaction does not attain completion. In such cases, the supplier issues a credit note to give effect to the cancellation or return of goods, which also flows into the credit note section of GSTR-1 (automatically, as per system reporting). The recipient, in such cases, does not account for Input Tax Credit, as no receipt or consumption of goods/services has occurred.

It is also observed that, in certain instances, departmental authorities may subsequently issue notices focusing primarily on credit notes issued by the supplier, without giving due consideration to the underlying original supply transaction, including dispatch of goods, issuance of e-invoice and e-way bill, and reporting in GSTR-1, which form the basis for such credit notes.

This cover note is therefore issued to provide contextual clarity and to support proper appreciation of the facts of the transaction in line with GST provisions.

CERTIFICATE OF NON-AVAILMENT OF INPUT TAX CREDIT (ITC) AND NON-REQUIREMENT OF ITC REVERSAL BY THE RECIPIENT OF GOODS
(Refer Section 34 of the CGST / TNGST Act, 2017)

Date: __________

To

Supplier's Legal Name: _____________________
Supplier's GSTIN: __________________________
Supplier's Address: _________________________

Subject: Confirmation of Non-Availment of Input Tax Credit (ITC) on Original Supplies and Confirmation that No ITC Reversal was Required in respect of Credit Notes issued under Section 34 of the CGST Act, 2017 for FY ______

Sir/Madam,

We, ___________________having our principal place of business at ____________________ and registered under GST bearing GSTIN __________________________, do hereby certify as under:

We hereby certify that we have received credit notes issued by you during the Financial Year _____ in respect of the return of goods under Section 34 of the CGST Act, 2017, amounting to a taxable value of Rs. ____________, with corresponding IGST of Rs. ____________, CGST of Rs. ____________, and SGST of Rs. ____________. The details thereof are provided in the enclosed Annexure, which forms an integral part of this certificate.

That the goods covered under the aforesaid credit notes have been duly returned to the supplier. We confirm that no Input Tax Credit (ITC) was availed by us on the original supplies covered under the said credit notes. Accordingly, no ITC reversal was required upon issuance of such credit notes, and no benefit of ITC has been claimed, utilized, or retained by us in respect of the said supplies.

That no Input Tax Credit attributable to the above transactions has been availed, utilized, or retained by us. Accordingly, no ITC reversal is required in respect of the said transactions, and there is no undue benefit or excess credit claimed in respect of the said supplies.

We understand that as per Circular No. 212/6/2024-GST dated 26.06.2024, a mechanism was prescribed for certification regarding reversal/non-retention of Input Tax Credit by the recipient, which was subsequently withdrawn vide Circular No. 253/10/2025-GST dated 01.10.2025. However, this certificate is being issued as a matter of record and for compliance support.

This certificate is issued at the request of the supplier to facilitate proper compliance under GST law and may be used for assessment, audit, verification, or any other proceedings under GST law.

This certificate is issued to confirm compliance with the provisions of Section 34 of the CGST/TNGST Act, 2017 and to establish that no Input Tax Credit relating to the aforesaid supplies has been availed, utilized, or retained by us.

Declaration

We hereby declare that the information furnished above is true, correct, and complete to the best of our knowledge and belief.

Thanking You,

Yours faithfully,

Authorised Signatory

Name: ______________________
Designation: _________________
Date: ______________________
Place: ______________________

Enclosure: Annexure to Certificate