Sandeep Dikshit calls AAP ‘a business company’
Dikshit took a dig at the party comparing its structure with a business company claiming that this is not a transfer of power but a transfer of shares that happens in a business company.
The Aam Aadmi Party (AAP) government, on Sunday, opposed the proposed Goods and Services Tax (GST) on gateway transactions less than Rs 2,000 and research grants ahead of the GST council meeting on Monday.
Delhi Finance Minister Atishi stated that the first important issue to be raised in tomorrow’s GST Council meeting is the imposition of GST on research grants.
In August, several major educational institutions in the country received show-cause notices from the Central government for non-payment of the GST amounting to Rs. 220 crore for six institutions, including IIT Delhi and Punjab University, she added.
Advertisement
“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,” said Atishi.
She said no country in the world imposes GST on research grants, whether it’s the US, the UK, Canada, China, or South Korea. In all these developed countries, educational institutions are not taxed on the research grants they receive. Why? Because these countries do not view research as a business; they see it as an investment.
The second issue to be raised in tomorrow’s meeting is to oppose the plan to levy GST on payment gateway transactions below Rs 2,000.
The minister said, “When we buy something online using debit cards, credit cards, or net banking, if our transaction is below Rs 2000, i.e. it is not subject to GST. If the transaction exceeds Rs. 2000, it attracts a GST of 18% on the payment gateway fees.”
“The Central government is proposing that all transactions through payment gateways, even if less than Rs. 2,000, will be charged 18% GST,” she lamented.
Atishi further said that the move would cripple countless startups and small businesses, and will undue financial burden on India’s entrepreneurs.
The Central government and PM Modi have been continuously saying in their speeches that they are promoting digital transactions and a cashless economy. However, their hypocrisy is evident as the Central government is bringing a proposal in the GST Council meeting tomorrow that online transactions below Rs 2,000, which were exempted from GST until now, will now be taxed, added the minister.
Advertisement
