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TMI BlogITC of CSR ExpensesX X X X Extracts X X X X X X X X Extracts X X X X ..... 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, 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, 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); R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 for ITC under the present GST regime. - Reply By CSSANJAY MALHOTRA - The Reply = Am in agreement with Sh. Kasturi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 disallowed. - Reply By Prem Choudhary - The Reply = Dear Sanjay ji Thank you for your valuable advice, can you s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hare the FAQ ... - ITC of CSR Expenses - Query Started By: - Prem Choudhary Dated:- 23-3-2019 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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