IIT-Delhi Slapped with Rs 120 Crore GST Notice for Research Funding; Other Institutions Also Targeted

IIT-Delhi faces a Rs 120 crore GST notice on research funds, raising concerns across educational institutions about the impact of GST on government-funded research.

on Aug 20, 2024

The Indian Institute of Technology-Delhi (IIT-D) has been hit with a show-cause notice from the Directorate General of Goods and Services Tax (GST) Intelligence, as reported by The Times of India. The notice demands Rs 120 crore in GST, along with interest and penalties, for research funds received from 2017 to 2022. IIT-D has 30 days to provide justification for why these charges should not be imposed.

This issue extends beyond IIT-D, as other educational institutions, including central universities, IITs, and both public and private universities, have received similar GST notices. A senior official from the Ministry of Education expressed concerns over this development, arguing that GST should not be applied to government-funded research, as it could hinder research efforts rather than support them.

A head of a private deemed university described the imposition of GST on research funds as a significant setback for the growth of higher education in India, pointing out that much of the funding is used for items already subject to GST. This sentiment highlights fears that such taxation could increase the overall cost of education.

In related news, Infosys has received a pre-show cause notice from GST authorities for Rs 32,403 crore related to services acquired from overseas branches since 2017, which the company believes should not be subject to GST.