ITC available on CSR expenditure spent by the company: AAR

M/s. Bambino Pasta Food Industries Private Limited, 8-2-610-68-1,2,3, Accord Blu, 4th Floor, Banjara Hills, Road No. 10, Hyderabad, Telangana – 500 034 (36AABCP9222D1ZN) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules.

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.

The applicant has purchased an oxygen plant for Rs 62,74,200/- and has given it to AIIMS Hospital has part of their corporate responsibility under section 135 of the companies Act, 2013.

Advance Ruling:

The 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 will be eligible for the input tax credit under CGST and SGST Acts.

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