GST – Gujarat AAAR - Section 17(5) of CGST Act, 2017 - Eligibility to input tax credit on CSR activities – Authority for Advance Ruling vide impugned order gave the ruling that CSR activities are excluded from normal course of business of the applicant and therefore not eligible for Input Tax Credit as per Section 16(1) of the CGST Act, 2017 – Being aggrieved with the said Ruling, the appellant preferred the present appeal - whether ITC is available on inputs and input services procured to undertake mandatory CSR activities - HELD - As per Section 2(108) of CGST Act, 2017, ‘taxable supply’ means a supply of goods or services or both which is leviable to tax under this Act - It is not the case of the appellant that their supplies under CSR activities are leviable to GST. Thus, taking into account the definition of taxable supplies and the provisions of Section 17(2) of CGST Act, 2017, input tax credit cannot be availed on CSR activities - Further, as per the provision of Section 37 of the Income Tax Act, 1961, expenses incurred on corporate social responsibility activities are not considered to be an expense incurred by the assessee for the objectives of the company or profession. Hence when the same does not amount to business expenditure and ITC cannot be claimed on such expenditure – Vide amended in Section 17 of CGST Act, 2017 by the Finance Act 2023, the legislature has clarified its intent to disallow input tax credit on goods or services or both which are to be used for activities relating to obligations under CSR – the impugned order passed by Authority of Advance Ruling is upheld and appeal is dismissed

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