AAP condemns Centre’s move to impose GST on research grants

AAP’s Rajya Sabha MP, Dr Sandeep Pathak, on Saturday criticised the Central Government’s proposal to impose Goods and Services Tax (GST) on research grants calling it an unprecedented and regressive step.

‘Tax terrorism’

The government argues that since research is a service, GST should be imposed on it. This is hysterical. Research is a service to humanity, it serves humankind for eternity. Research and development take the nation forward. This is outright ‘tax terrorism’.— Dr Sandeep Pathak, AAP leader

Pathak said premier research institutions, including IIT-Delhi, were issued show-cause notices, demanding they pay GST on grants received over the past seven years, amounting to approximately Rs 220 crore.

“This is happening for the first time in the history of not only the country, but the entire world that a government is imposing taxes on research grants,” he said.

“The government argues that since research is a service, GST should be imposed on it. This is hysterical. Research is a service to humanity, it serves humankind for eternity. Research and development take the nation forward. The country’s development is based on this and the government is levying tax on it. This is outright ‘tax terrorism’,” the AAP MP added.

He said research funding is primarily used for scholarships, consumables and research equipment — areas where taxes are already paid during the purchase of equipment and consumables.

“Now, what remains is the scholarship for research students ie about Rs 20,000 to 25,000, on which they are going to impose tax,” he added.

He also compared India’s research and development spending with that of the US that allocates $57 billion annually and China which allocates $87 billion. India contributes only $2.5 billion, he said.