No GST on Research Grants for Universities and Tax-Exempt Institutions: Sitharaman

New Delhi:The GST Council declared that funds given to Central and State Government universities for research will no longer be subject to GST. This exemption also applies to institutions that hold tax-exempt status.

This move is seen as a significant step to promote research and development in India. By removing GST from research grants, the government expects universities and other organizations to carry out research without the additional financial burden of taxes.

Finance Minister Nirmala Sitharaman, who chaired the meeting, indicated that this measure will enhance creativity and research in India, particularly in state institutions. She explained that the decision aligns with the government’s goal of expanding the country’s education and research base.

The exemption applies to both ongoing and future research projects funded by the government or other tax-exempt organisations, allowing institutions to focus on their research without concerns about GST.