The GST Council will hold a meeting on Monday. During this meeting, the Kejriwal government will oppose the GST applied on research grants. Delhi Finance Minister Atishi had said a day earlier that the BJP-led NDA government sent a GST notice of ₹220 crore in August to six major educational institutions in the country.
Atishi pointed out that in no country in the world is GST imposed on research grants received by educational institutions, as they see research not as a business but as an investment in the nation’s progress.
Developed Countries Invest Large Portions of GDP in Research
Finance Minister Atishi explained that countries like Israel invest 4.94% of their GDP in research, Japan 3.82%, the US 2.83%, and Germany 3.13%. Meanwhile, the Indian government claims that its goal is to make the country a “world leader.” However, between 2014 and 2024, the research budget was cut from ₹70,000 crore to ₹35,000 crore, which is just 0.41% of the national budget.
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She added that while the central government itself does not provide enough funds for research, it is still collecting GST on research grants received by educational institutions from the private sector. The central government has also sent show-cause notices to these institutions, demanding ₹220 crore in taxes.
Demand to Remove GST from Research Grants
Atishi emphasized that in the GST Council meeting, the Delhi government will demand the removal of GST on research grants. It is important to note that today’s meeting is the 54th GST Council meeting, where many key decisions will be made regarding which goods and services should have GST applied. The meeting will cover several important issues concerning both Delhi and the nation.
