NITI Aayog urges return of 5% GST on R&D procurement
Business
NITI Aayog is urging the government to bring back the 5% GST rate on research and development (R and D) procurement.
It says this move would free up more money for public institutions, which have been squeezed since GST rates jumped to 12-18% in June 2022.
NITI Aayog: R&D target 2% GDP
According to NITI Aayog's latest report, higher taxes are making it harder for research centers, especially those already on tight budgets, to do their work.
The report also pushes for India's R and D spending to rise from just 0.64% of GDP to at least 2% over the next few years, hoping this boost will spark more innovation and help tackle big challenges.