Cabinet clears proposal to convert GST Network into government-owned company

Arun Jaitley said that 50 percent stake will be owned by the Centre and the remaining by the states on pro-rata basis in the new structure.

Press Trust of India September 26, 2018 15:29:10 IST
Cabinet clears proposal to convert GST Network into government-owned company

New Delhi: The Cabinet Wednesday cleared a proposal to convert GST Network (GSTN) into a government-owned company, finance minister Arun Jaitley said.

Briefing reporters about the decisions taken in the Cabinet meeting, the finance minister said that 50 percent stake will be owned by the Centre and the remaining by the states on pro-rata basis in the new structure.

Currently, the Centre and states together hold 49 per cent stake in the GST Network, the company that provides IT backbone to the new indirect tax regime. The remaining 51 percent is held by five private financial institutions -- HDFC Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and LIC Housing Finance Ltd.

The proposal to convert GSTN into 100 per cent government-owned company was earlier approved by the all-powerful GST Council.

The GSTN was incorporated as a private limited company on 28 March, 2013 under the UPA government. It is a Section 8 company under the new Companies Act and hence is a not-for-profit entity.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

States should stand firm, reject Centre's options on GST compensation, says P Chidambaram
India

States should stand firm, reject Centre's options on GST compensation, says P Chidambaram

The former finance minister said the states should not borrow as the liability to provide GST compensation as well as the onus to find resources fall on the Centre

GST Council to extend surcharge on taxes over luxury goods, fails to reach consensus on issue of states' compensation
India

GST Council to extend surcharge on taxes over luxury goods, fails to reach consensus on issue of states' compensation

The panel, which decides on tax rates and structure of the GST, will meet again on 12 October to thrash out the state compensation issue

GST Council fails to reach consensus on compensation to states; next meeting on 12 October
Business

GST Council fails to reach consensus on compensation to states; next meeting on 12 October

Finance minister Nirmala Sitharaman said the panel decided to extend the use of GST cess collections for compensating states beyond the previously agreed June 2022 timeframe