Delhi Minister Atishi Vows Opposition to GST on Research Grants and Health Insurance

Delhi Minister Atishi announced on Monday that both the Delhi and Punjab governments will strongly oppose any move to impose GST on research grants and health insurance during the 54th GST Council meeting. The meeting, chaired by Union Finance Minister Nirmala Sitharaman, is currently taking place in New Delhi.

Atishi criticized the central government for reducing research grant budgets while proposing an 18% GST on grants received by educational institutions. She questioned the rationale behind taxing research conducted by institutions like IIT Delhi, which focuses on developing vehicles, aircraft, and medical equipment.

“The Delhi government will firmly oppose any GST on research grants,” Atishi stated, emphasizing that such measures undermine the efforts of institutions working for national development.

Another key issue raised by Atishi involves the imposition of GST on online payments below Rs 2,000, which she argues would adversely affect small businesses and startups. Additionally, she voiced concerns about the potential GST on health insurance, life insurance, and insurance for individuals with mental disabilities.

Punjab Finance Minister Harpal Singh Cheema supported Atishi’s stance, stating that both Delhi and Punjab are united in opposing GST on health insurance and research grants. Cheema emphasized that research should be exempt from GST as it contributes significantly to the country’s development.

The GST Council, which includes state ministers, is expected to discuss these issues and consider significant relief measures. Sources indicate that the Council might reduce the GST rate on health insurance premiums, which is currently set at 18%. Last month, the reconstituted Group of Ministers on GST rate rationalization reviewed proposals for changes in the health insurance sector. The last GST Council meeting in June had introduced several notable measures, including Aadhaar biometric integration and exemptions for railway services.