GST ITC restriction on CSR spend: Why businesses are worried about potential challenges

Seamless flow of Input Tax Credit (ITC) is the cornerstone of a robust Value-Added Tax (VAT) architecture. Simply put, say Company A - whether a manufacturer, service provider or trader, who purchases goods or services for business purposes, the VAT charged by its vendors is typically available as a set-off to Company A for adjustment against its output VAT liability. Albeit this princip…