The composition of goods and services tax network (GSTN), a private company tasked to create Information Technology infrastructure for GST, is under examination to give to the Centre majority stake in
The composition of goods and services tax network (GSTN), a private company tasked to create Information Technology infrastructure for GST, is under examination to give to the Centre majority stake in it.
The government of India presently has 24.5 per cent stake in GSTN while state governments together hold another 24.5 per cent. The balance 51 per cent equity is with non-government financial institutions, like HDFC Bank, ICICI Bank and LIC Housing Finance.
The development comes after apprehensions were raised against GSTN by many stake holders including association of Indian Revenue Service (Customs and Central Excise) officers.
It had said since GSTN is funded by the central and state governments, there is no justification in entrusting its management to private individuals with heavy salary and allowance.
“The central government is examining GSTN and may hold majority stake. This move has addressed our concern that such a valuable asset should not be controlled by private entities,” a spokesperson of the IRS association said.
The association said that the model GST law and rules are being framed.
