The Directorate General of Goods and Services Tax (GST) Intelligence has sent a showcase notice to the Indian Institute of Technology (IIT) Delhi demanding Rs 120 crore in GST on the research funding acquired between the years 2017 and 2022, stated a report by Times of India. This also included interest and penalties.
The premier institute based out of Delhi has 30 days to respond to the notice, as per a top official from the Ministry of Education, as per the Times of India report. The official also added, “We believe this is a misinterpretation. In our view, GST should not be imposed on government-funded research. Regrettably, such notices are issued. We ought to encourage and support research rather than seeing it as a taxable entity.”
The report also stated that several educational institutions, central universities, well-known IITs and even state-run and private varsities have been the recipients of such notifications from the authorities at GST.
Certainly, concerns regarding the financial load on such educational institutions. A head of a private deemed university, speaking to theTimes of India, said, “Viewing educational institutions as sources of tax revenue will only increase the cost of education."
GST on research funds to universities could prove to be a "major setback" to educational institutions and research in India.
