Aam Aadmi Party’s national general secretary Dr Sandeep Pathak on Saturday condemned the proposal to impose GST on research grants received since 2017, describing it as unprecedented in global history.
AAP Rajya Sabha MP Pathak criticised the government for allegedly stifling innovation and progress by taxing research aimed at the nation’s development. He has called for the immediate withdrawal of this policy at the upcoming GST Council meeting.
Pathak said, “The Modi government’s recent decision to impose a tax on research grants marks a dangerous new chapter in the BJP’s agenda. They have proposed retroactive GST on grants given to research institutions from 2017. A show-cause notice has been issued to all premier institutes, reminding them to pay GST on research grants received since 2017. They have demanded around Rs 220 crore, including from premier institutions like IIT Delhi.”
Pathak further said, “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. The government argues that since research is a service, GST should be imposed on it. This is a very hysterical argument. Research is a service to humanity, it serves humankind for eternity. Research and Development (R&D) also takes the nation forward. The country’s development is based on this and the government is levying tax on it,” the AAP leader added, terming it as outright ‘tax terrorism.”
The senior AAP leader and RS MP affirmed that the party strongly condemns the proposal to impose GST on research grants. He added that in the upcoming GST Commission meeting, the party will demand the government to withdraw the policy unconditionally.
“If the government does not retract this policy, the AAP will raise its voice against it on every appropriate forum and will make every effort to compel the government to withdraw it,” he added.
He also criticised the move as being beyond comprehension, pointing out that countries such as the USA, UK, Germany, South Korea, Singapore, and Canada do not impose taxes on R&D.