In put from April 23 to Sept.23

Hi Rajkumar,

You’re right about the amendment related to ITC on CSR expenditure. Here’s a detailed explanation based on the Finance Act 2023 and the CBIC Notification No. 28/2023 – Central Tax dated 31.07.2023:

ITC on CSR Expenditure – Key Points

Section 17(5)(fa) Inserted by Finance Act 2023:
- It specifically blocks ITC on goods and services used for Corporate Social Responsibility (CSR) activities.
Effective Date:
- The blocking of ITC on CSR expenditure is effective from 1st October 2023 onwards (as per Notification No. 28/2023 dated 31.07.2023).
Treatment of ITC on CSR Expenses Incurred Before 01.10.2023:
- ITC on CSR expenditure incurred from April 2023 to September 2023 remains eligible to be claimed.
- You can claim the ITC in the respective months' returns (such as September 2023 GSTR-3B).
Prospective Blocking:
- The amendment and notification have prospective effect starting October 2023.
- So, any ITC on CSR expenditure after 30th September 2023 will be blocked.

Summary:

Period	ITC on CSR Expenditure Allowed?
April 2023 – Sept 2023	Yes, ITC can be claimed
From 1st Oct 2023 onwards	No, ITC is blocked as per Section 17(5)(fa)

So, for your query:

You can take GST input credit for CSR expenditure incurred from April 2023 to September 2023 in your September 2023 GSTR-3B return.
Ensure to maintain proper documentation and invoices.

If you want, I can help you draft the relevant entries or a note for your audit file explaining this treatment.

Let me know!