In a decision by the GST council, the universities, and research centres established under the Central & State government Act or those claiming the income tax exemption would waived from filing GST on research funds. In the last meeting of the council the same ruling has been made that assures that these institutions would not suffer GST charges on government and private research grants.
The outcome is post Delhi Minister Atishi challenged any measure to tax research grants at the GST council meeting. Atishi has condemned the central government on the decision to levy the GST on research grants citing that no country would impose the tax on the grants.
She said that the University of Punjab and IIT Delhi, as well as the others, have obtained the SCN for not making the GST payment on grants obtained in the duration of 2017-2024.
It has been cited by Atishi that the action of the Central government to cap the quantum of research allow and and levy the GST on self-generated funds from private or foreign institutions was not fair.
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She wishes to defend other institutions of knowing from making unwanted expenditures.
The council that includes the Union Finance Minister and the ministers of all the States and Union Territories was made in the year 2017 towards availing the important decisions of GST.
The council is consistent with its updated decision with its objective to lessen the tax complexity which is served via the new single regime the previously complex indirect tax.
For educational institutions, the same exemption would be compelling therefore assisting them in effectively handling the research grants without being loaded by GST payments.
The measure sought to validate the stand of the council for the academic and research community since it makes the GST framework effective.
