New Delhi: Delhi Finance Minister Atishi has announced her opposition to the Centre’s proposal to impose Goods and Services Tax (GST) on online transactions below ₹2,000, citing concerns that it will place an undue burden on start-ups and small businesses.
Speaking ahead of the crucial GST Council meeting on Monday, Atishi also voiced her strong disapproval of GST being levied on research grants procured by educational institutions, stating it would stifle innovation and development in the country.
Atishi emphasized that the issue of research grants was one of the key topics of discussion at the GST Council meeting. She highlighted that prestigious institutions, including the Indian Institutes of Technology (IITs) and Punjab University, had received show-cause notices regarding the imposition of GST on research grants. She criticized this move, calling it harmful to India’s research and development sector.
“Research is an investment in the country’s development, and imposing GST on research grants is a step in the wrong direction,” said Atishi. She further argued that rather than promoting research, the Centre was both decreasing funding and introducing additional tax burdens on institutions that depend on these grants.
Atishi also expressed concern over the government’s consideration of levying GST on online payments made through payment gateways, which are currently exempt from the tax for transactions up to ₹2,000.
“This move will create a burden on start-ups, which rely heavily on small online transactions to survive and thrive in today’s digital economy,” she remarked.
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and consisting of state finance ministers, was expected to deliberate on several critical issues.
These included taxation of insurance premiums, the Group of Ministers’ (GoM) recommendations on rate rationalization, and a status report on online gaming taxation.
However, Atishi’s focus remained firmly on the issues affecting the research and start-up sectors, which she views as vital to India’s growth trajectory.
As the Delhi government continues to raise concerns about the financial challenges facing the country’s educational and business sectors, Atishi’s stance signals a broader debate on how taxation policies should balance revenue generation with the need to support innovation and entrepreneurship.
The outcomes of the GST Council meeting are expected to have wide-reaching implications for both educational institutions and start-ups across India.
