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

1. Section 17(5)(fa) Inserted by Finance Act 2023:

   • It specifically blocks ITC on goods and services used for Corporate Social Responsibility (CSR) activities.

2. 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).

3. 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).

4. 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:

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!