CBIC Notifies GST Exemption for R&D Services Supplied by Government Entities and Educational Institutions w.e.f. 10th Oct 2024

The CBIC has issued a notification exempting GST for research and development (R&D) services supplied by government entities and educational institutions, effective October 10, 2024. This exemption aims to promote innovation and research by reducing the tax burden on these services. The notification specifies the conditions and criteria for the exemption, including the requirement for the services to be in connection with grants and approved under specific provisions of the Income Tax Act, 1961. This measure is expected to support the growth of R&D activities and enhance the country’s innovation ecosystem.