Admissibility of Input Tax Credit on the Corporate Social Responsibility (CSR) expenditure under Section 135 of the Companies Act, 2013

M/s Bambino Pasta Food Industries Private Limited [AAR Telangana]

In the instant case, during the COVID time applicant donated oxygen plant to AIIMS hospital. Assessee submission 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

Held: 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.