AAP calls GST on research grants ‘tax terrorism’, demands withdrawal

The party also demanded the withdrawal of the tax on research grants. | Archive photo: PTI

2 minutes of reading Last update: 07 Sep 2024 | 21:37 IST

The Aam Aadmi Party (AAP) on Saturday slammed the BJP-led central government for imposing Goods and Services Tax (GST) on research grants, calling the move “tax terrorism”.

The party also demanded the abolition of the tax on subsidies for scientific research.

For the first time in history, the government is levying a tax on grants received by research institutes, AAP general secretary Sandeep Pathak told a press conference.

The Modi government has issued a notification to all institutes proposing to impose GST on research grants received since 2017, Modi said, adding that it is a double layer of taxation as a part of the grants is used for consumables and equipment which are already taxed.

Research grants are not taxed in any developed or developing country like the US, UK, Germany, South Korea or Singapore. Imposition of GST on research done for the development of humanity and the country is “tax terrorism”, Pathak charged.

The Rajya Sabha MP also criticised the government for “stiflinging” innovation and progress by taxing research aimed at developing the country. He demanded that the decision be withdrawn in the next GST Council meeting.

A show-cause notice has been issued to all the premier institutes that they will have to pay GST on all research grants they received from 2017 till date. The government has demanded GST of around Rs 220 crore from these institutes, including IIT Delhi, Pathak said.

“If the government does not withdraw this policy, the AAP will oppose this proposal at every appropriate forum and make all efforts to force the government to withdraw it,” he said.

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First published: 07 Sep 2024 | 21:37 IST