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
- 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
- The GST Council, headed by Union Finance Minister Arun Jaitley, approved a proposal for the conversion at its recent meeting
Particulars of the GSTN
- GSTN is the IT backbone of the unified indirect tax system
- 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
- to provide shared IT infrastructure and services to the Centre and the State governments, taxpayers and other stakeholders for the implementation of the GST
- Currently, the Centre and State Governments hold 24.5 per cent stake each in GSTN; non-governmental institutions hold the other 51 per cent
- These institutions include HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment Co and LIC Housing Finance Ltd.
- From now, the Centre will hold 50 per cent, and the remaining stake will be held by States governments on a pro rata basis