Input credit for donation should be taken or not

As you are donating it is merely in your own interest and it is not treated as for consideration hence it is not supply itself and GST is not applicable as such on the donation.

The term, “supply” has been inclusively defined in the Act. The meaning and scope of supply under GST can be understood in terms of the following six parameters, which can be adopted to characterize a transaction as a supply

1. Supply of goods or services. Supply of anything other than goods or services does not attract GST

2. Supply should be made for a consideration

3. Supply should be made in the course or furtherance of business

4. Supply should be made by a taxable person

5. Supply should be a taxable supply

6. Supply should be made within the taxable territory

In a construction business there are lot of donation @ viksh ji, so if I purchase somethings with GST so it will be treated as consideration or not, but all this for business purpose, not only own interest.

@ zulfikar will it be considered as supply as it is for no consideration and if it is not a supply itself then GST should not be charged at all.

@ abhijit Except for schedule I items nothing can be considered as supply if made without consideration. It would be great if you can further elaborate on your query.

@ Zulfakir these are the lines of the first para from where you copied your above response 

Providing the donor is not receiving a material benefit in return for the payment, there are no GST consequences.

So, let's wait for Abhijit to elaborate on the query and solve it accordingly.

I am sorry I misunderstood the question

If it is not treated as supply as per Entry 1 of Schedule 1; then ITC will be blocked as per sec17(5)(h).

If treated as supply we can claim ITC.

As per case laws, If CSR expenditure is within the limit then you can claim ITC, because as it is mandated by companies act and is considered as in the course or furtherance of business

If expenditure is made more (i.e >2%) it will be considered as made voluntarily and will be treated as  gift and hence ITC will be blocked under 17(5) and note that it is applicable only for goods.