The 27th GST (Goods and Services Tax) Council meet on 4 May
2018 thru video-conferencing approved
making the GST (Goods and Services Tax) Network a government entity by taking
over 51% stake that is currently being held by private entities, says Union
finance minister Arun Jaitley, according to the media report.
The government has already been looking into the possibility of
converting GST Network into a majority government company or a 100 percent
As of now, five financial
institutions HDFC, HDFC Bank, ICICI Bank, NSE Strategic investment and LIC
housing finance together hold 51% stake in the GST Network.
Currently, the Government of India holds 24.5% equity in the GSTN and all
States of the Indian Union, including NCT of Delhi and Puducherry, and the
Empowered Committee of State Finance Ministers (EC), together hold another
51% equity is with non-Government financial institutions.
The company has been set up primarily to
provide IT infrastructure and services to the Central and State Governments,
tax payers and other stakeholders for implementation of the Goods and Services
Tax (GST). The Authorised Capital of the company is Rupees ten crore only.
The GST Council, the highest decision making body of
GST regime, also deferred a decision on levying a cess on sugar and
referred the issue of incentivising digital payments to a group of state finance
further said that the central government will own 50% in the GST Network, while
the states will collectively hold the remaining half stake.
GST meet (26th GST Council meet) was held on March 10.
The GST collection in April crossed the Rs. 1
lakh crore mark for the first time, indicating stabilisation of the new indirect
tax regime that was rolled out on July 1 last year.
It may be recalled BJP MP Subramanina Swamy has
expressed concern over GSTN’s shareholding pattern and has asked the Prime
Minister to take a ‘close second look’ into that pattern since it allows a private
entity to have access to ‘sensitive’ information without security.