LatestGoods & Service Tax (GST) 9 August 2026
Defence Startups Get GST Relief
The Ministry of Defence has agreed to fully reimburse 18% GST on R&D grants for defence startups, providing relief to these companies. The GST is calculated on the full value of goods or services provided, and the final tax amount actually paid to the government is determined after considering the input tax credit, which can be claimed by the startups
The Ministry of Defence has announced that it will *fully reimburse* 18% GST on R&D grants for defence startups. This move is expected to provide significant relief to these companies. Some key points to note:
- The GST is calculated on the full value of goods or services provided
- The final tax amount actually paid to the government is determined after considering the input tax credit, which can be claimed by the startups
- This reimbursement will help defence startups to focus on their research and development activities without worrying about the additional tax burden
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