GST demand on IIT-Delhi's research grants sparks controversy over taxing education
NEW DELHI: The Indian Institute of Technology-Delhi (IIT-D) has received a show-cause notice from the Directorate General of Goods and Services Tax (GST) Intelligence, demanding Rs 120 crore in GST on research grants it received between 2017 and 2022, along with interest and penalties. While IIT-D has not commented on the matter, a senior official from the ministry of education described the notice as unfortunate and stated that they plan to contest it, arguing that GST should not apply to government-funded research.
The notice gives IIT-D 30 days to explain why the amount should not be levied along with the associated penalties.
Despite attempts to reach IIT-D’s administration, the head of the institution did not respond to calls or messages. However, a senior education ministry official confirmed that a response to the notice is forthcoming, adding, “We believe this is a misinterpretation. In our view, GST should not be imposed on government-funded research.
”The official expressed concern, saying, "It is regrettable that such notices are issued. Instead of viewing research as a taxable entity, we should be fostering and supporting it."
