The government is likely to introduce amendments to Goods and Services Tax (GST) law through the Finance Bill, 2023, denying businesses credit for the taxes paid while procuring goods and services that they provide to the community under their corporate social responsibility (CSR) obligations.
This would mean that the taxes that are part of the goods and services used in CSR activities cannot be adjusted against the company’s overall GST liability, according to two persons aware about discussions in the Central government. “This would be a major change to the GST law," said one of the persons. The plan is to amend sections in the GST Act (16 and 17) dealing with input tax credit or ITC.
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