The party also demanded the removal of the tax on research grants. | File photo: PTI
The Aam Aadmi Party (AAP) on Saturday slammed the BJP-led central government for imposition of Goods and Services Tax (GST) on research grants, describing the move as “tax terrorism”.
The party also demanded the abolition of the tax on research grants.
For the first time ever, a government is imposing a tax on grants received by research institutes, AAP general secretary (organisation) Sandeep Pathak said at a press conference.
The Modi government has issued a notice to all institutes, proposing to impose GST on research grants received since 2017, he said, adding that it was a double layer of taxation as a portion of the grants are used on consumables and equipment which are already taxed.
Research grants are not taxed in any developed or developing country, including the US, UK, Germany, South Korea or Singapore. Imposing GST on research that is done for the development of humanity and the country is “tax terrorism,” Pathak said.
The Rajya Sabha MP also criticised the government for “stifling” innovation and progress by taxing research meant for the nation’s development and demanded that it be withdrawn at the next meeting of the GST Council.
Pathak said a notice has been sent to all premier institutes to declare that they will have to pay GST on all research grants received by them from 2017 till now. The government has demanded a GST of around Rs 220 crore from these institutes, including IIT Delhi.
“If the government does not withdraw this policy, AAP will raise its voice against this proposal at all appropriate forums and make all possible efforts to get the government to withdraw it,” he said.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 7, 2024 | 21:37 IS
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