Goods and Services Tax (GST)

GST Network will soon become a 100% govt-owned company


Mains Paper 2: Governance | Important aspects of governance, transparency and accountability, e-governance- applications, models, successes, limitations, and potential

From UPSC perspective, the following things are important:

Prelims level: Particulars of the GSTN

Mains level: The new proposal.

Proposal approved by the GST council

  1. The Goods and Services Tax Network – Special Purpose Vehicle (GSTN-SPV) will cease to be a private company and morph into a 100 per cent government owned entity
  2. The GST Council, headed by Union Finance Minister Arun Jaitley, approved a proposal for the conversion at its recent meeting

Particulars of the GSTN

  1. GSTN is the IT backbone of the unified indirect tax system
  2. GSTN was created as a private limited, not-for-profit company under Section 25 of the Companies Act, 1956, by the government on March 28, 2013
  3. to provide shared IT infrastructure and services to the Centre and the State governments, taxpayers and other stakeholders for the implementation of the GST
  4. Currently, the Centre and State Governments hold 24.5 per cent stake each in GSTN; non-governmental institutions hold the other 51 per cent
  5. These institutions include HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment Co and LIC Housing Finance Ltd.

New proposal

  1. From now, the Centre will hold 50 per cent, and the remaining stake will be held by States governments on a pro rata basis
Notify of
Inline Feedbacks
View all comments