Delhi Minister Atishi Opposes New GST Proposals
Online Payments and Research Grants in Focus
New Delhi [India], September 8: Delhi Minister Atishi announced that the central government plans to propose an 18% tax on online payments below Rs 2,000 at the upcoming GST Council meeting. She stated that her government and party would oppose this proposal, as it would harm small businesses and startups. Currently, online payments made through payment gateways are not taxed.
Atishi also opposed taxing research grants given to educational institutions. She mentioned that several institutions, including Punjab University and IIT Delhi, received show-cause notices for not paying GST on research grants from 2017 to 2024. She argued that no country imposes a tax on research grants and that the central government has already reduced the amount of these grants. The Delhi government will demand GST exemption on research grants at the GST Council meeting.
The 54th Meeting of the Goods and Services Tax Council, consisting of the Union Finance Minister and representatives from all States and Union Territories, will be held on September 9. The GST Council makes decisions on various aspects of GST, including tax rates, exemptions, and administrative procedures. The last meeting was held on June 22, 2024.
The GST regime, introduced on July 1, 2017, simplified compliance and reduced the cascading impact of tax. A Finance Ministry study suggested that consumers saved at least four per cent of their household monthly expenses on daily consumables like cereals, edible oils, sugar, sweets, and snacks.
Doubts Revealed
Delhi Minister Atishi -: Atishi is a politician from Delhi, which is the capital city of India. She works in the government to help make decisions for the people living in Delhi.
GST -: GST stands for Goods and Services Tax. It is a tax that people pay when they buy goods (things) and services (help or work done for them).
Online payments -: Online payments are when you use the internet to pay for things, like when you buy something on a website or send money using a phone app.
Research grants -: Research grants are money given to schools or scientists to help them study and find out new things. This money helps them do their work without worrying about costs.
GST Council -: The GST Council is a group of people from the government who meet to decide how GST should work in India. They talk about changes and new rules for the tax.
Small businesses -: Small businesses are shops or companies that are not very big. They are usually run by a few people and are important for the local community.
Startups -: Startups are new companies that are just beginning. They often have new ideas and try to grow quickly.
