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GST ITC curbs on CSR spend spark business alarm ahead of budget rollout
Economy
Published on 24 April 2026
ITC on CSR-linked purchases could be blocked
Budget proposals for FY 2023-24 suggest restricting input tax credit (ITC) on goods or services used to meet CSR obligations. Experts warn this could reduce the practical value of CSR benefits by raising effective costs for companies. Businesses are concerned the move may make it harder to sustain or expand CSR programs, especially where tax credit currently improves affordability.
- Proposed FY 2023-24 change targets ITC on CSR spending-linked inputs
- Experts fear CSR benefits could effectively shrink for companies
- Businesses worry the rule may raise the cost of compliance and giving
- CSR-linked procurement could face reduced tax-credit benefits
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times