GST is exempted for Research Institutions as per 54 GST meeting

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Srimannarayana (Querist)
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04 December 2024 Ours is a Research Institution we are funded by GOI we are providing Research and development consultancy services. Are these services exempted as per 54th GST meeting

Research and development services supplied by:
(a) Government Entities
(b) Institutions notified under Section 35 of the Income Tax Act, 1961, when consideration is received in the form of grants.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 December 2024 The services you mentioned are recommended as exempt under GST.
According to Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, the following services are exempt:
Research and development services supplied by:
Government Entities [Sl. No. 28 (a)]
Institutions notified under Section 35 of the Income Tax Act, 1961, when consideration is received in the form of grants [Sl. No. 28 (b)].

Srimannarayana

Srimannarayana (Querist)
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04 December 2024 Sir but we are providing services to private organization and getting consultancy charges not as grants even though it is exempted? Till yester day we have charged GST@18% under SAC code 998114.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 December 2024 It has been recommended as follows:
The GST Council recommended to exempt supply of research and development services by a Government Entity; or a research association, university, college or other institution, notified under clauses (ii) or (iii) of sub-section (1) of section 35 of the Income Tax Act, 1961 using Government or private grants.
Refer: https://gstcouncil.gov.in/sites/default/files/2024-09/pib2053233.pdf
Final notification awaited.

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