The corporate social responsibility (CSR) cost of companies is likely to increase with the restriction on availability of goods and services tax (GST) input tax credit proposed by the government.
The Budget, on Wednesday, sought to amend a section of the CGST Act to the effect that input tax credit will not be available in respect of goods or services used for CSR activities under Section 135 of the Companies Act, 2013.
The move may bump up the cost of CSR for companies. But more importantly, beneficiaries could be at the receiving end.
R Shankar Raman, whole-time director and chief