Contradictory AAR verdicts on CSR under GST regime baffle companies

Contradictory corporate social responsibility (CSR) verdicts by the Authorities for Advance Ruling (AARs), under the goods and services tax (GST) regime, have created confusion among private players, who clearly appear unhappy with the rulings. 

Recently, the Uttar Pradesh AAR had held that CSR spend by companies is eligible for input tax credit. This is contradictory to the Kerala AAR, which earlier noted that such transactions are not eligible for input tax credit refund.

In the case of Dwarikesh Sugar Industries, engaged in the business of manufacture and sale of sugar and allied products, the company undertook various CSR activities. They