The Niti Aayog has proposed restoration of 5% goods and services tax (GST) slab for research and development (R&D) procurement in the country, saying it will increase effective usable funds available to R&D institutions.
A GST slab of 5% was available till June 2022. However, the Centre did away with the concessional rates at the 47th GST Council meeting, following which the public-funded institutions have been paying standard GST rates (12-18%) for research-related procurements. “This reduces the actual availability of already limited R&D funds,” the Aayog said in a report, titled ‘Ease of Doing Research & Development in India – Removing Obstacles, Promoting Enablers’, released on Monday.
Besides, it proposed to India’s investment in R&D from current 0.64% to at least 2% of GDP in four-five years to strengthen the country’s R&D ecosystem.
Source from: https://economictimes.indiatimes.com/news/india/niti-aayog-advocates-for-5-gst-rate-on-rd-procurement-to-boost-research-funding-in-india/articleshow/131185164.cms?
