GST on CSR funds received.

[Vijay Kumar]

Respected experts, One of my client regd under GST under service provider category issued non GST invoice ( without GST) for CSR funds received from a trust. Is there any exemption available for Such funds recd from paying GST ? Trust from whom CSR funds recd is not willing to pay GST. Kindly guide me., I shall be highly thankful.

AI Summary

CSR Funds Not Exempt from GST; Must Pay GST on Cum-Tax Basis, Trust Eligible for Input Tax Credit A client registered under GST as a service provider issued a non-GST invoice for CSR funds received from a trust and queried if such funds are exempt from GST. Three responses indicate no exemption is available. If GST was not collected, it should be treated on a cum-tax basis, and GST must be paid. The trust can claim Input Tax Credit (ITC) if they pay GST. The discussion references a case where CSR was optional, but under the Companies Act 2013, CSR is now mandatory, and related expenditures are deductible under the Income Tax Act.