<h1>Research and development services exemption: grants from government entities or notified institutions remove GST on supplied R&D services.</h1> Research and development services are exempt from GST when the consideration is grants supplied by a Government Entity or by a research association, university, college or other institution notified under clauses (ii) or (iii) of subsection (1) of section 35 of the Income Tax Act, 1961, provided that such institution is notified at the time of supply. 'Government Entity' covers authorities, boards or other bodies including societies, trusts and corporations established by statute or by Government with substantial government participation to perform entrusted functions.