GST

Exempt from GST: Following the GST Council’s decision to exempt central and state-governed higher education institutions from settling GST on their research funding, notices issued to some prominent institutions, including IIT-Delhi, Anna University, and Punjab University, concerning their outstanding GST pays will no longer be sought out.

The Goods and Services Tax (GST) Council, in its 54th meeting on Monday, resolved to exempt universities and research centers run by the central or state governments, as well as those exempt from income tax, from paying GST on research funding. The exemption applies to research money received from both the government and the commercial sector. Until the above, they had to pay 18% GST on their research grant.

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These institutes claim that the move represents a significant step toward reducing budgetary strains, allowing them to focus more on innovation and high-impact research activities. They do, however, point out that there is still tremendous room for flexibility in other areas, such as college fees, particularly those at private colleges.

“The recent exemption of GST on research grants in educational institutions has been broadly welcomed within the academic community… Reducing the tax burden allows institutions to invest with greater confidence in potentially groundbreaking and risky projects,” Bhuvnesh Kumar, dean of research at Sharda University was quoted as saying.