Delhi and Punjab Governments Oppose GST on Research Grants and Health Insurance
New Delhi, September 9: Aam Aadmi Party leader and Delhi Minister Atishi has announced that the Delhi and Punjab governments will strongly oppose the implementation of GST on research grants during the 54th meeting of the GST Council. The meeting, chaired by Union Finance Minister Nirmala Sitharaman, is currently taking place in the national capital.
Atishi criticized the Central Government for reducing research grants in its budget while imposing an 18% GST on grants obtained by educational institutions. She questioned the rationale behind taxing research activities conducted by institutions like IIT Delhi.
She also highlighted concerns about the proposal to impose GST on online payments under Rs 2,000, which could adversely affect small businesses and start-ups. Additionally, she opposed GST on health, life, and disability insurance.
Punjab Finance Minister Harpal Singh Cheema echoed these sentiments, emphasizing the need to scrap GST on health insurance and research grants. He argued that research benefits the country’s development and should not be taxed.
The GST Council, which includes state ministers, is expected to discuss these issues and may provide relief by reducing the GST rate on health insurance premiums. Currently, there is an 18% GST on health and life insurance policies.
In the previous GST Council meeting, several measures were announced, including Aadhaar biometric integration and exemptions in railway services.
Doubts Revealed
GST -: GST stands for Goods and Services Tax. It is a tax that people pay when they buy goods or services in India.
Research Grants -: Research grants are funds given to researchers or institutions to help them conduct studies and experiments.
Health Insurance -: Health insurance is a type of insurance that helps cover medical expenses when someone gets sick or injured.
54th GST Council meeting -: The 54th GST Council meeting is a gathering of government officials to discuss and make decisions about GST policies.
Delhi Minister Atishi -: Atishi is a government official in Delhi who helps make decisions for the city.
Punjab Finance Minister Harpal Singh Cheema -: Harpal Singh Cheema is a government official in Punjab who manages the state’s finances.
Union Finance Minister Nirmala Sitharaman -: Nirmala Sitharaman is a top government official in India who oversees the country’s finances.
Educational Institutions -: Educational institutions are places like schools and colleges where people go to learn.
Small Businesses -: Small businesses are companies that are not very big and usually have fewer employees.
Health Insurance Premiums -: Health insurance premiums are the amounts of money people pay regularly to keep their health insurance active.