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CSR expenses

tejas daga (1 Points)

17 January 2018

Can company take the input credit of GST of the expenses incurred for corporate social responsibility

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Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 08 September 2018

Facts of each case / transaction will need to be analysed taking into consideration relevant provisions of GST law, before taking a call on claiming benefit of ITC qua such transactions. Unless specifically clarified by the Department, there could be an exposure to litigation if credit is availed in such cases where output is not subject to GST. ITC becoming cost to company due to its inadmissibility might lead to curtailment of benefit to the society at large unless company prefers taking additional hit on its profits.

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