AAP Denounces GST Imposition on Research Grants as 'Tax Terrorism'

The Aam Aadmi Party (AAP) fiercely criticized the central government's decision to impose Goods and Services Tax (GST) on research grants. Calling the move 'tax terrorism,' AAP demanded immediate withdrawal of the tax. AAP alleges this unprecedented action stifles innovation and burdens research institutes financially.

The Aam Aadmi Party (AAP) slammed the BJP-led central government on Saturday for imposing Goods and Services Tax (GST) on research grants, terming the move as 'tax terrorism.'

The party has called for an immediate withdrawal of the tax on research grants.

For the first time in history, a government is taxing grants received by research institutes, highlighted AAP general secretary (organization) Sandeep Pathak at a press conference. The Modi government has issued a notice proposing to impose GST on research grants retroactively since 2017, Pathak said, adding that it effectively results in double taxation as part of the grants is already taxed for consumables and equipment.

Research grants are not taxed in other developed or developing nations like the USA, UK, Germany, South Korea or Singapore. By imposing GST on critical research, the government is perpetrating 'tax terrorism,' Pathak charged. The Rajya Sabha MP accused the government of stifling innovation and national progress by enforcing this tax and demanded its withdrawal at the next GST Council meeting.

A show-cause notice has been sent to all premier institutes, informing them they will have to pay GST on all research grants received since 2017. The government has demanded around Rs 220 crore in GST from these institutes, including IIT Delhi, Pathak added.

If the government does not retract this policy, AAP will raise its voice in every appropriate forum and fight to ensure the policy's withdrawal, Pathak asserted.

(With inputs from agencies.)