DRDO Takes Action to Support MSMEs and Startups in R&D with Parliamentary Committee on Defence
In a significant move towards promoting research and development (R&D) in the country, the Defence Research and Development Organization (DRDO) has taken up the issue of MSMEs and startups receiving GST notices to submit 18 per cent tax on grants received for pursuing R&D with the Parliamentary Committee on Defence.
This issue has been a major concern for MSMEs and startups, who have been struggling to keep up with the financial burden of paying 18 per cent GST on the grants received for R&D activities. This has not only hindered their progress but has also discouraged them from taking up innovative projects in the defense sector.
Recognizing the importance of MSMEs and startups in the defense sector, DRDO has taken a proactive step to address this issue and ensure that these small businesses and startups are not burdened with unnecessary taxes. The organization has approached the Parliamentary Committee on Defence, which has the power to review and provide recommendations on matters related to defense.
The move by DRDO has been welcomed by the industry, with many experts hailing it as a positive step towards promoting R&D in the country. MSMEs and startups are the backbone of the Indian economy, and their contribution to the defense sector cannot be overlooked. These small businesses and startups have the potential to bring in innovative ideas and technologies, which can greatly benefit the defense sector.
Moreover, the defense sector is a crucial area for R&D, as it not only contributes to the country’s security but also has the potential to boost the economy. With the government’s focus on promoting indigenous defense manufacturing, it is imperative to support and encourage MSMEs and startups in this sector.
The issue of GST notices has been a major roadblock for these small businesses and startups, who have been struggling to keep up with the financial burden. Many of them have even had to put their R&D projects on hold due to the high tax rates, which have affected their cash flow.
However, with DRDO taking up the issue with the Parliamentary Committee on Defence, there is hope that a solution will be reached soon. The organization has been actively working towards promoting the growth of MSMEs and startups in the defense sector, and this move is a testament to their commitment.
It is heartening to see that the government is taking note of the challenges faced by MSMEs and startups and is working towards finding a solution. This step by DRDO is a ray of hope for these small businesses and startups, who play a crucial role in the defense sector.
The Parliamentary Committee on Defence, which is responsible for reviewing the functioning of the Ministry of Defence, has a crucial role to play in this matter. With their expertise and understanding of the defense sector, they can provide valuable recommendations that can help resolve this issue.
It is also important to note that the grants received by MSMEs and startups for R&D activities are already exempted from income tax under Section 35 (2AB) of the Income Tax Act. Therefore, it is unfair to impose an additional tax burden on these small businesses and startups, which are already struggling to survive in a highly competitive market.
In conclusion, DRDO’s initiative to take up the issue of GST notices with the Parliamentary Committee on Defence is a welcome move that will go a long way in promoting R&D in the country. The government’s support and encouragement for MSMEs and startups in the defense sector will not only boost the economy but also contribute to the country’s security. It is time to remove the roadblocks and create a conducive environment for these small businesses and startups to thrive and contribute to the growth of the nation.
