The Companies Act, of April 2013 created an opportunity for Indian companies to contribute to development in various ways. As seen, companies that meet the criteria are required to spend some money on CSR activities. However, there is still some confusion about whether the input tax credit is available for the procurement of goods/services for CSR activities and whether GST applies to the supply of CSR services.
To understand the trade and industry with respect to the applicability of GST on CSR activities better, TeamLease Education Foundation did extensive market research and compiled everything in a report.
The report covers the nature and magnitude of the GST issues and their impact and implication on businesses and people.
Some other highlights of the report are:
Overall CSR composition and its distribution mainly in the education and skill development sectors.
- The impact of CSR on businesses' ability to retain top talent.
- Highlights what the next generation of employees entering the workforce seeks out in an employer.
- The sentiment of businesses toward the effect of the GST levy on CSR.
- The knowledge and awareness of businesses on GST and its impact and opinion on pre vs post-GST levy.
- Lastly, a set of recommendations on the exemption of GST on CSR activities, bridging the employability gap and assisting in making India the Skill Capital of the World.