Atishi, Finance Minister, Government of Delhi
In the 54th GST Council meeting, it has now been decided to bring research grants under GST after Delhi government’s opposition – says Delhi Finance Minister Atishi. He also said that the central government has agreed to this after the Aam Aadmi Party’s Delhi and Punjab governments protested in the GST Council. In the whole matter, the Finance Minister of Delhi said that the decision not to impose GST on research grants is a big step for development. He said research grants to educational institutions should not be taxed. This decision is in favor of our educational institutions.
After Finance Minister Nirmala Sitharaman’s decision, Atishi said that the Aam Aadmi Party had consistently opposed GST on research grants. Even today in the meeting Delhi and Punjab governments raised this issue vigorously. Our party had said that GST should not be levied on research grants received by educational institutions – whether they are government grants or private.
The central government sent GST notices on research grants to several educational institutions in August.
In 2014, the central government used to give research grants of Rs 70,000 crore in its budget, which has now come down to Rs 35,000 crore, but when academic institutions themselves are bringing research grants, the central government is giving them Rs 220 crore. pic.twitter.com/fOJSHfl6h4
— AAP (@AamAadmiParty) September 9, 2024
Delhi-Punjab government protested
Finance Minister Atishi also said that the Delhi and Punjab governments have been raising the issue repeatedly. GST should not be levied on research grants. After this decision, GST will no longer be levied on research grants received by any educational institution.
What was the point of GST on research grants?
Till now, the central government levies 18% GST on private research grants received by educational institutions. According to information, the central government recently sent a tax notice of Rs 220 crore on research grants to 6 major educational institutions of the country. Atishi also said that there is no country in the world that imposes GST on research. In such a situation, the Delhi and Punjab governments of Aam Aadmi Party strongly opposed it. The result was that the GST Council meeting today decided to exclude research grants from the ambit of GST.