TaxTMI 
TaxTMI 
ITC of CSR Expenses
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....TC of CSR Expenses<br> Query (Issue) Started By: - Prem Choudhary Dated:- 23-3-2019 Last Reply Date:- 25-3-2019 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>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. Reply By KASTURI SETHI: The Reply: Dear Querist....
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...., On what basis you can jump to conclusion that CSR is not in furtherance of business ? What is logic behind your view ? CSR (Corporate Social Responsibility) expenses are covered under Section 2 (17) (b) of CGST Act, 2017 which extracted below :- Section 2 (17) "business" includes - (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity,....
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.... whether or not it is for a pecuniary benefit; (b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a); Relevant clauses have been highlighted. CSR expenses are eligible for ITC under GST. . On 5.9.18, Mumbai Bench of CESTAT has held that CSR activities are linked to business and eligible for cenvat credit as input service. Although the above decision of ....
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....CESTAT Mumbai pertains to the pre-GST period yet it is applicable to post-GST regime. However, there is another case law which is appended below: 2018 (362) E.L.T. 833 (Tri. - Mumbai) = 2018 (9) TMI 247 - CESTAT MUMBAI ESSEL PROPACK LTD. Versus COMMISSIONER OF CGST, BHIWANDI In view of the above two case laws (though pertaining to pre-GST era), I am of the view that CSR expenses are eligible fo....
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....r ITC under the present GST regime. Reply By CSSANJAY MALHOTRA: The Reply: Am in agreement with Sh. Kasturi ji that ITC is available on CSR activities. Govt clarified vide FAQ also. Please do note that if you avail iTC then you have to incur additional expense on CSR. Hence advisable not to avail ITC to save on additional outflow. Check from Income Tax side, May be these expenses are disallowe....
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....d. Reply By Prem Choudhary: The Reply: Dear Sanjay ji Thank you for your valuable advice, can you share the FAQ ...<br> Discussion Forum - Knowledge Sharing ....