Charity work ISD

This query is : Resolved

Quick Summary

Discussion is on GST ITC treatment for charity/CSR activities like education aid, groceries, and religious help. Clarification: ITC on goods used for charity is blocked under Section 17(5)(h). ISD mechanism is not applicable for such ineligible ITC, even if activities are done at head office for branches.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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31 March 2026 We are making charity to poor people, like as educational help, religious work, grocery to poor people etc.
For above purpose we purchases material. We debited the said expenses as a " Charity expenses "
Can above purchase bill ITC be mandatory to routed through ISD Mechanism.
Pl. Guide.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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31 March 2026 ITC on goods distributed for charity (groceries/books) is blocked under Section 17(5)(h), meaning you cannot claim the credit. If the expense is for a service used by multiple branches, routing through the ISD mechanism is mandatory; however, for the purchase of materials (goods), the ISD mechanism does not apply.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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01 April 2026 All above CSR activities done by our H. O. Location.
Our branches are spread all over India. Is CSR activities ITC attributable to all branches if yes, then we strat to route through ISD
Yes I agree this ITC is ineligible.

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