Case Details : GST- Input Tax Credit on CSR expenditure
Case Related To : BAMBINO PASTA FOOD INDUSTRIES PRIVATE LIMITED
Declared By : Telangana - Advance Ruling on 20th October 2022
What Happened Exactly :
- The applicant Bambino Pasta Food Industries is a manufacturer of Vermicelli and pasta Products.
- The Applicant filed for advance ruling application to know the admissibility of ITC on the Corporate Social Responsibility (shortly known as CSR) expenditure spent by it.
- During the COVID time applicant donated oxygen plant to AIIMS hospital.
- Assessee submits that CSR activity is to be considered as “used or intended to be used in the course or furtherance of business” as CSR expenditure is mandatorily required to be incurred to comply with the Companies Act, 2013.
Court's Decision :
- . Expenditure made towards corporate responsibility under section 135 of the Companies Act, 2013, is an expenditure made in the furtherance of the business. Hence the tax paid on purchases made to meet the obligations under corporate social responsibility is eligible for input tax credit under GST law.
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