News

GST AAR: CSR expenses are business related and qualify for input tax credit

GST AAR: CSR expenses are business related and qualify for input tax credit

lity expenditure is incurred by a company in order to comply with the requirements of the Companies Act, 2013. Thus, such expenses are incurred in the course of business and are eligible for input tax credit under Goods and Services Tax (GST) regulations, according to a GST ruling given by the Authority of Advance Ruling (UP Bench).
This ruling, which distinguishes between goods given voluntarily as ‘gifts’ and those that are part of CSR activities, provides much relief to companies engaged in litigation on the issue of input tax credit (ITC).

 

Top