Discussion is about whether ITC on CSR expenses under Companies Act must be distributed via ISD. Clarification: CSR expenses generally do not qualify for ITC under GST, so ISD distribution is not applicable. Query further asks whether even ineligible ITC requires mandatory ISD distribution.
03 April 2026
We made CSR activities from our company's profit, as per Company act. On CSR activities expenses ITC can mandatory to distribute to distinct branches through ISD Mechanism.
03 April 2026
No, ITC on CSR expenses is NOT mandatorily required to be distributed through ISD—in fact, in most cases ITC itself is not available on CSR expenses, so the question of ISD distribution usually doesn’t arise.