Research and development services against consideration received in the form of grants supplied by - (a) a Government Entity; or (b) 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. — GST rate 0%

As per Notification 12/2017 (amended by 16/2025), research and development services against consideration received in the form of grants supplied by - (a) a government entity; or (b) 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. classified under SAC Heading 9981 attracts 0% GST effective 22 September 2025. On an intra-state supply this is charged as 0% CGST plus 0% SGST; on an inter-state supply the full 0% is charged as IGST. This rate applies subject to the condition: Provided that the 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 is so notified at the time of supply of the research and development service..