Following a ₹120 crore GST notice directed at IIT-Delhi for research grants between 2017 and 2022, the Ministry of Education has engaged the Ministry of Finance to resolve the issue. The GST Directorate had demanded tax payment along with penalties and interest, sparking concern among educational institutions.
In Short:
- IIT-Delhi was served a ₹120 crore GST notice related to research grants.
- The Ministry of Education is in talks with the Ministry of Finance to address the matter.
- The notice includes penalties and interest, with a 30-day response period.
- Other institutions, including Anna University, have also received GST notices.
- Infosys was previously issued a notice for over ₹32,403 crore for services from overseas branches.
The Indian Institute of Technology (IIT) Delhi recently found itself at the center of a significant tax dispute after receiving a ₹120 crore GST notice from the Directorate General of GST. The notice concerns research grants that the institution received between 2017 and 2022.
In response to this development, the Ministry of Education quickly stepped in, initiating discussions with the Ministry of Finance to resolve the issue. The education ministry's intervention highlights the gravity of the situation, given the potential financial impact on one of the country's premier educational institutions.
According to sources, the GST notice demands not only the payment of ₹120 crore but also includes penalties and accumulated interest. IIT-Delhi has been given 30 days to respond to the show-cause notice.
In addition to IIT-Delhi, several other educational institutions across the country have been issued similar GST notices. Notably, Anna University in Tamil Nadu has been asked to pay ₹5.4 crore in GST liabilities. Both private and government-run colleges and universities are reportedly affected by these notices, which have caused considerable concern within the academic community.
This wave of GST notices follows a similar incident involving Infosys, one of India’s leading tech companies. The GST authorities issued Infosys a notice amounting to ₹32,403 crore for services conducted through its overseas branches over a five-year period starting in 2017. Infosys has contested the notice, describing it as a "pre-show cause" notice, and maintains that the GST regulations do not apply to these specific expenses.
As the situation unfolds, all eyes are on the ongoing discussions between the Ministry of Education and the Ministry of Finance, with hopes that a resolution can be reached that will address the concerns of educational institutions while maintaining compliance with GST laws.