IIT Delhi faces Rs.120 crore GST show-cause notice over research grants: Report
The Indian Institute of Technology Delhi has reportedly been issued a show-cause notice by the directorate general of Goods and Services Tax (GST) Intelligence, demanding Rs. 120 crore in tax on research grants received between 2017 and 2022, along with interest and penalties.
Although IIT-D has not commented on the issue, a senior official from the Ministry of Education called the notice unfortunate and said they plan to contest it, arguing that GST should not apply to government-funded research, The Times of India reported.
A senior official from the ministry of education hinted that a response to the notice is being prepared, suggesting that the issue may stem from a misinterpretation as they believe GST should not apply to government-funded research, according to the report.
The official also expressed concern over such notices and said that research should be encouraged and supported, not treated as a taxable entity, as per the report.
Government officials have said that various educational institutions throughout India such as leading IITs, central universities and both state-run and private universities have recently been issued comparable notices by GST authorities.
