Cabinet approves increasing of Government ownership in Goods and Services Tax Network and change in the existing structure with the transitional plan
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved increasing of Government ownership in Goods and Services Tax Network (GSTN) and change in the existing structure with the transitional plan as per following:
- Acquisition of entire 51% equity held by the Non-Government Institutions in Goods and Services Tax Network equally by the Centre and the State Governments and allow GSTN Board to initiate the process for acquisition of equity held by the private companies.
- The restructure Goods and Services Tax Network, with 100% government ownership shall have equity structure between the Centre (50%) and the States (50%).
- To allow the change in the existing composition of the Board of Goods and Services Tax Network inducting three directors from the Centre and the States and three other independent directors to be nominated by the Board of Directors and one Chairman and the CEO. Thus the total number of Directors is 11.
Present Status of GSTN
Goods and Services Tax Network (GSTN) is a Section 8 (under the new Companies Act, not for profit companies are governed under section 8), non-Government, private limited company. It was incorporated on March 28, 2013. The Government of India holds 24.5% equity in 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 24.5%. Balance 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, taxpayers and other stakeholders for the implementation of the Goods and Services Tax (GST). The Authorised Capital of the company is Rs. 10,00,00,000 (Rupees ten crore only). GSTN