GST Applicablity on Grants received

[RAJA SWAMINATHAN]

Is GST applicable on grants received for research and Devoleopment projects

[RAJA SWAMINATHAN]

Grant in Aid received from Central Governement and State Governemnts are exempt.

[KASTURI SETHI]

Pl. read Notification Nos.45/17-CT (Rate) & 47/17-IT Rate both dated 14.11.17

[Rajagopalan Ranganathan]

Sir,

In case research grant is given with counter obligation on the researcher to provide IPR rights on the outcome of research or activity undertaken with the help of such grants then the grant is a consideration for the supply of service of research. Therefore it is liable to gst.

General grants for researches will not amount to a consideration and not liable to gst.

AI Summary

GST on research grants: taxable when grants impose IPR or other counter obligations, otherwise exempt as non consideration.
GST on research grants depends on whether the grant is consideration for a supply: government grants in aid are exempt, while grants tied to a contractual obligation to transfer intellectual property or provide deliverables are taxable as payment for research services.