54th GST Council Meeting: Delhi Finance Minister to Address GST on Research Grants

Delhi Finance Minister Atishi announced that she will raise concerns about the imposition of GST on research grants at the 54th GST Council meeting to be conducted on 9th September 2024. The GST Council, chaired by Finance Minister Nirmala Sitharaman, includes state finance ministers.

Speaking at a press conference, the Delhi Finance Minister criticised the government’s decision to impose an 18% GST on research grants received by educational institutions from private entities.

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She argued that this move is unjustified, especially given that budget allocations for research have been reduced from 2014 to 2024. The minister pointed out that countries like the US and UK do not impose taxes on research grants, underscoring the discrepancy, reported Moneycontrol.

In addition to the GST on research grants, the Minister will also address the proposed GST on online transactions below Rs 2,000.

The Council meeting is expected to address a range of topics, including the taxation of insurance premiums, recommendations from the Group of Ministers (GoM) on rate rationalisation, and a report on online gaming. Recently, the Central Board of Indirect Taxes and Customs ( CBIC ) has informed that the GST provisions in the Finance Act, 2024, will take effect following the GST Council meeting. Thus, the GST amnesty and Section 16(4) relief notifications will be issued after the council meeting.

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