New Delhi: Aam Aadmi Party leader and Delhi Minister Atishi on Monday said that if GST is implemented on research grants that institutes receive then the Delhi government and the Punjab government will strongly oppose it during the 54th meeting of the GST Council.
The 54th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, is underway in the national capital.
“The Central Government is continuously reducing the amount of research grants from its budget and on the other hand, when education institutes are bringing research grants on their own, then 18 per cent GST is being imposed on them…If an institute like IIT Delhi is researching certain types of vehicles, aircraft and medical equipment, then why GST is imposed on it?” Atishi told ANI.
She further said that if there is talk of imposing any kind of GST on research grants given to the institutions, then the Delhi government would strongly oppose it.
“Another important issue is related to online payment. Till now, less than Rs 2,000 online payments were exempted from GST but there is a proposal that GST should be imposed on payments made through payment gateways. This will have a huge impact on small businesses and start-ups. If GST is implemented on health insurance, life Insurance and insurance for people with some mental disability, both the Delhi government and the Punjab government should strongly oppose this,” she added.
Punjab Finance Minister Harpal Singh Cheema said that they would speak about scrapping GST on health insurance.
“Delhi and Punjab are on the same page regarding the agenda on Health insurance–whether GST should be imposed on Health Insurance. GST should not be imposed on this…We will speak about scrapping GST on health insurance. The second biggest issue is about research, be it a private or government institution, we oppose GST on them. Research is being done for the country, for its development, so there should be no GST on it,” Cheema said.
The GST Council is chaired by Nirmala Sitharaman and comprises state ministers as its members.
According to sources, the GST Council is likely to provide significant relief to individuals and senior citizens by slashing the GST rate on health insurance premiums. Currently, there is an 18 per cent GST rate on health and life insurance policies.
Last month, after the first meeting of the reconstituted Group of Ministers on GST for rate rationalisation, Samrat Chaudhary, Bihar Deputy CM and Convenor of GST GoM on rate rationalisation, said that proposals had come for rate changes in the health insurance sector, and the group was reviewing the representations.
In the last GST Council meeting held on June 22, the Finance Minister announced several significant measures, including Aadhaar biometric integration, and exemptions in railway services, among others.
