ITC of CSR Expenses

[Prem Choudhary]

Dear Expert

Please advice, whether CSR Expenses are eligible for credit under GST.

we are aware that this is not furtherance of business expenses but it is provided in other Laws.

AI Summary

Debate on CSR Expenses as Input Tax Credit under GST; Insights on Section 2(17)(b) and Potential Tax Implications. A discussion on a forum addressed whether Corporate Social Responsibility (CSR) expenses are eligible for Input Tax Credit (ITC) under the Goods and Services Tax (GST). One expert argued that CSR expenses fall under the definition of business activities as per Section 2(17)(b) of the CGST Act, 2017, and cited a Mumbai CESTAT decision supporting this view. Another participant agreed, noting that the government clarified this in a FAQ, but advised caution as availing ITC may require additional CSR expenditure and could be disallowed under Income Tax laws.