Kejriwal Government to Oppose GST on Research Grants in GST Council Meeting
New Delhi: The Kejriwal government is set to challenge the imposition of GST on research grants at the upcoming GST Council meeting. Delhi Finance Minister Atishi slammed the BJP-led central government for treating research as a business rather than an investment in India's future.
Atishi stated that the central government's decision to impose GST on research grants is wrong and that the Delhi government strongly opposes it. She highlighted that no country in the world imposes GST on research grants, as they view research as an investment rather than a business.
The central government had sent show-cause notices to six major educational institutions, including IIT Delhi and Punjab University, for non-payment of GST amounting to Rs. 220 crores. Atishi argued that imposing GST on research grants received by educational institutions is unfair and will hinder India's progress.
The Finance Minister also pointed out that developed countries invest a significant portion of their GDP in research grants, whereas India's investment in research has decreased under the Modi government. She emphasized that the central government should not tax research grants received from private institutions, as it does not invest in research itself.
Atishi mentioned that the Delhi government has been consistently raising the voices of Delhi's people and all citizens of the country in the GST Council. She added that several important issues will be addressed in tomorrow's meeting, including the imposition of GST on research grants.
The Finance Minister stated that the central government claims that research grants received by institutions like IIT Delhi and other colleges and universities between 2017 and 2024 are liable for GST. She affirmed that imposing GST on research is wrong and that the Delhi government strongly opposes this.
Atishi cited data on expenditure done by developed countries on research, stating that countries like Israel, Japan, the US, Germany, and even Brazil invest a significant portion of their GDP in research grants for educational institutions. She pointed out that India's investment in research under the Modi government has decreased since 2014, from Rs. 70,000 crores to Rs. 35,000 crores, which is only 0.41% of the budget.
The Finance Minister concluded that the central government's decision to tax research grants is completely wrong and that the Delhi government, under the leadership of CM Arvind Kejriwal, strongly opposes it. She announced that the Delhi government will demand the immediate removal of GST on research grants and exemptions for educational institutions receiving research grants at the GST Council meeting.
