GST Council Meeting: Universities or educational institutions or research institutes formed by the laws of the central and state governments have got a big relief in the GST Council meeting. Finance Minister Nirmala Sitharaman has announced that the council has decided that if any university or research center formed by the laws of the state or central government receives funds from the government or the private sector, then they will not have to pay any GST on this fund.
IIT Delhi received notice
Actually, last month, the news came that various other educational institutions including IIT Delhi which are engaged in research have received notices for paying GST on funds for research. After the GST notices received by these big educational institutions, the Finance Ministry was being heavily criticized. The Directorate General of GST Intelligence (DGGI) had sent a notice of tax demand to a total of seven institutions including IIT Delhi.
Prime Minister Modi took cognizance
The Finance Minister said that Prime Minister Narendra Modi himself took cognizance of this GST notice. The Finance Minister said that Prime Minister Modi also told her that you announce research fund in the budget, you have created a fund for research. What is the issue of GST in this? The Finance Minister said that the Prime Minister himself ordered her to bring a proposal in the GST Council meeting that no GST will have to be paid on the funds received by these research institutes. The Finance Minister said that on this order of the Prime Minister, I myself proposed in the GST Council meeting that wherever the university or research institute gets funds from the government or private sector, they should be exempted from GST and the entire GST Council has supported this proposal.
Tax terrorism allegations rejected
In fact, in the notice sent to IIT Delhi, DGGI has demanded Rs 120 crore, which includes interest and penalty along with tax arrears. This matter also came into controversy because the notice of arrears has been sent for the research grant received by IIT Delhi. DGGI had sent a show cause notice to IIT Delhi regarding the research grant received between 2017 and 2022. In the notice, IIT Delhi has been given 30 days’ time and it has been asked why tax along with penalty should not be recovered on the concerned grant. Many experts termed this notice as tax terrorism. On which Finance Minister Nirmala Sitharaman had to give clarification. The Finance Minister said, I can say with responsibility that this was not an attempt of tax terrorism. She told that a total of seven institutions in different states have been sent notices.
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