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Delhi Finance Minister Atishi has announced her intention to raise concerns about the imposition of Goods and Services Tax (GST) on research grants received by educational institutions during the upcoming 54th GST Council meeting. This move highlights the ongoing tension between the central government and states regarding the implementation of GST, particularly its impact on education and research. Atishi's statement, delivered at a press conference, underscores the perception that the central government has not adequately supported research, with budget allocations for this sector declining between 2014 and 2024. She argues that imposing GST on research grants, particularly those originating from private entities, is unwarranted, and that this practice contrasts with the approach taken by countries like the US and UK, where such grants are exempt from taxation.
Beyond the issue of research grants, Atishi has also indicated her opposition to the central government's proposal to levy GST on online transactions below Rs 2,000. The absence of GST on smaller transactions in the past has been seen as a way to support smaller businesses and individuals engaging in online commerce. This change in policy, according to Atishi, could have a disproportionate impact on smaller players in the online marketplace. The proposed move to tax smaller online transactions has raised concerns among businesses and consumers, who fear that it could stifle innovation and discourage participation in the digital economy.
The 54th GST Council meeting is expected to cover a broad spectrum of topics, ranging from the taxation of insurance premiums to the rationalization of GST rates. The Fitment Committee, comprised of tax officials from both the central and state governments, will present a report on the GST levied on insurance premiums, highlighting the revenue implications of these policies. The meeting will also review progress on the taxation of online gaming, which has been a subject of debate and scrutiny in recent times. As the GST Council seeks to address these issues, it will be crucial to ensure that its decisions reflect the needs of both the central government and the states, as well as the interests of businesses and consumers across the country.
Source: Will raise GST issue on research grants in council meet: Delhi FM