IIT-Delhi Faces Rs 120 Crore GST Demand on Research Funding

The Indian Institute of Technology (IIT) Delhi has received a Goods and Services Tax (GST) demand notice amounting to Rs. 120 crore related to research funding. The tax department contends that the research grants received by the institute should be treated as taxable services under GST. IIT Delhi is disputing this demand, arguing that research funding should be exempt from GST as it is not a commercial service. This case highlights the complexities and challenges educational institutions face in interpreting GST regulations, especially concerning non-commercial activities like research and development.