Availment of Input Tax Credit in relation to CSR expenditure: The dilemma persists

Prerna Chopra & Shreya Khunteta – [2021] 131 taxmann.com 95 (Article)

There have been divergent views adopted by the Central Excise and Service Tax Appellate Tribunal and the Authority of Advance Ruling in different States with respect to the credit availment of the tax paid on the inputs used for the CSR activities by companies. The corporate taxpayers remain under dilemma with respect to the eligibility of ITC on inputs used for rendering CSR activities. In this article, the authors have discussed the provisions under Companies Act and GST Act with respect to CSR expenditures and its eligibility for claiming ITC along with various ruling of pre-GST regime and post GST regime.

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