INPUT TAX CREDIT ON CSR ACTIVITIES NOT ELIGIBLE.
In the recent case of In re M/s Adama India Private limited the Gujrat Authority for Advance Ruling held that the activities undertaken for complying with the obligation of corporate social responsibility are outside the purview of the normal course of business and therefore not eligible for input tax credit as per section 16(1) of the Central Goods and Services Act 2017. The Gujrat Authority for Advance Ruling further relied on Rule 4(1) of the Companies (CSR Policy) Rules,2014 and Rule 2(d) of the Companies (CSR Policy) Amendment Rules 2021, to come to this conclusion of excluding CSR activities from the purview of Input Tax Credit. This particular ruling can also create ambiguity in the minds of tax payers as it is contravening an earlier ruling of the Uttar Pradesh Authority for Advance Ruling. Moreover, it can also discourage the corporate sector for incurring expenditure on reducing the effects of the pandemic.
Sources  In re M/s Adama India Private limited GUJ. GAAR. R. 44. 2021 (India), http://www.gstcouncil.gov.in/sites/default/files/AARDynamic/Order_ %20Final_44_2021_Adama_India_pvt.ltd%20_19_2021.pdf.  In re Dwarikesh Sugar Industries Limited UP. GAAR. 52. 2020 (India), http://www.gstcouncil.gov.in/sites/default/files/AAR-Dynamic/UP_AAR_52_22.01.2020_DSIL.pdf.