GST Exemption - Notification Nos.47/17

[KV Vijayendra]

Sir

Notification Nos.47/17 is applicable for the purchase of laboratory equipment by private institute affiliated to Government approved university. The purchase is made from the government funded laboratory development grant such as MODROB by All India Council for Technical Education [AICTE]

Kindly clarify whether the purchase under such grants is entitled for concessional GST

[KASTURI SETHI]

Notification No.47/17-I.T.(Rate) dated 14.11.17 has been amended vide Notification No.10/18-I.T.(Rate) dated 25.1.18 and it has to be read with Notification No.51/96-Customs dated 23.7.96 as amended.Goods supplied to and for the research institution/centre mentioned in the notification are entitled to concessional rate of Integrated Tax which is 5%. It is subject to so many strings attached to .In all these notification basic emphasis is laid on research i.e. concessional rate is for the purpose of research.

[Ganeshan Kalyani]

There is no restriction mentioned in the Notification. So credit should be eligible .

AI Summary

Concessional GST for research supplies: applies to qualifying research institutions; input tax credit may be available. Supplies of goods to eligible research institutions and centres are subject to a concessional rate of integrated tax when made for the purpose of research; the relevant notifications must be read together and the concessional treatment is subject to qualifying conditions, while input tax credit may be available in the absence of explicit notification restrictions.