Delhi Finance Minister Atishi on Sunday said she will raise the issue of imposition of GST on research grants procured by educational institutions in the 54th GST Council meeting.

Addressing a press conference, the minister said, "The (central) government has reduced budget allocation for research from 2014 to 2024. If an educational institution gets a research grant from a private entity, the government imposes 18 per cent GST, which is not justified. We will oppose it."

She added that the central government claims that research grants received by institutions like IIT Delhi and other colleges and universities between 2017 and 2024 are liable for GST. “Imposing GST on research is wrong, and the Delhi government strongly opposes this,” the Delhi Minister stated. She also said that taxes are not imposed on research grants in foreign countries such as the US and UK.

 “If you look at the data, you’ll see that the countries we consider developed invest a significant portion of their GDP into research grants for educational institutions. Israel invests 4.94 per cent of its GDP, Japan 3.82 per cent, the US 2.83 per cent, Germany 3.13 per cent, and even Brazil, which is also a developing country, invests 1.16 per cent.”

Atishi said the second issue she will raise in the 54th meeting of the GST Council to be held on Monday is the imposition of GST on online transactions below Rs 2,000. "The central government is coming up with a proposal to impose GST on online transactions of less than Rs 2000. No GST was earlier imposed on such small transactions. We will oppose this proposal," she added.

“Today, primarily small shops, businesses, and startups sell their goods online. Many startups today operate exclusively as online businesses. In Delhi, many young entrepreneurs run small businesses through their websites or Instagram, selling fashion-related items, clothing, designer products, jewelry, cakes, pastries, etc,” she asserted.The senior AAP leader said that these small businesses primarily rely on payment gateways for transactions. “So if GST is imposed on payment gateways, then small businesses and startups will be affected the most,” she mentioned.

She added that the Delhi government will strongly oppose the central government's proposal to impose GST on transactions less than Rs. 2000 in the GST Council tomorrow. “This proposal will affect startups, small businesses, and the common consumer who often makes small online purchases,” concluded Minister Atishi.

 The GST Council on Monday is expected to deliberate on a host of issues, including taxation of insurance premium, GoM's suggestions on rate rationalisation, and a status report on online gaming, according to sources.

At the meeting, the Fitment Committee, comprising central and state tax officials, will present a report on GST levied on life, health and reinsurance premiums and their revenue implications.

The GST Council is chaired by Finance Minister Nirmala Sitharaman and comprises state ministers.