AAR UP allows Input Tax Credit on expense made under Corporate Social Responsibility

Authority of Advance Ruling vide order no. 52 dated 22.01.2020 allowed Input Tax Credit on expenses incurred with respect to Corporate Social Responsibility (CSR) for application dated 24.09.2019 of M/s Dwarikesh Sugar Industries Limited, P.O.- Medpurasultan, Najibabad, Nagina Road, Bundki, Bijnor, Uttar Pradesh.

The below questions has been answered in the said ruling:-

Whether expenses incurred by the Company in order to comply with requirements of Corporate Social Responsibility (CSR) under the  Companies Act, 2013 (‘CSR Expenses’) qualify as being incurred in the course of business and eligible for input tax credit (‘ITC’) in terms of the Section 16 of the Central Goods and Services Tax Act, 2017 (‘CGST Act, 2017’)?

Answer: – Yes.

Whether free supply of goods as a part of CSR activities is restricted under Section 17 (5) (h) of CGST Act, 2017?

Answer: – No

Whether goods and services tax used for construction of school building which is not capitalized in the books of accounts is restricted under Section 17 (5) (c) / 17 (5) (d) of CGST Act, 2017?

Answer: – ITC is not available to the extent of capitalisation.

For more details, Read the Advance Ruling from the Link below:

PDF version is attached: AAR UP-Allows Input Tax Credit on expense made under CSR – short


This document has been prepared in summary form by Dewan P. N. Chopra & Co. based on the advance ruling as indicated above. For further details, please refer the said Judgement as per link attached above. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of such information. Reader should conduct and rely upon their own examination, investigation and analysis and are advised to seek their own professional advice. The information and data contained herein is not a substitute for the recipient’s independent evaluation and analysis. This document is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies on it.


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