Credit on CSR activity involving goods and services

[Guest]

Hi all

I feel this is of interest to all of you

There are divergent opinion on Credit on goods used in CSR activity and also services used in CSR activity. As service is not covered under Sec 17(5).

Also in Service tax there is one favorable judgment on the issue but in the service tax the specific exclusion like section 17(5) in GST was not there.

Pl clarify whether credit can be taken on CSR activity on goods as well services.

AI Summary

Debate on GST Input Tax Credit Eligibility for CSR Activities Highlights Section 17(5) Restrictions and Differing Opinions A discussion on the Goods and Services Tax (GST) treatment of Corporate Social Responsibility (CSR) activities reveals differing opinions on whether Input Tax Credit (ITC) can be claimed for goods and services used in CSR. Some participants reference favorable judgments under the previous service tax regime, suggesting ITC eligibility, while others highlight the restrictive nature of Section 17(5) of the GST Act, which limits credit on goods given as gifts. The debate also touches on the differences between direct and indirect taxes, with some arguing that CSR expenses should be considered in the course of business, thus eligible for ITC.