What is the issue ?
- The Goods and Services Tax (GST) Council has approved a proposal to convert GST Network, the IT backbone of GST, into a government-owned entity.
Previous pattern of shareholding :
- Presently, the Central Government and State Government are holding 24.5% equity shares respectively and the remaining 51% are held by non-Governmental institutions and through various mechanisms, GSTN is under strategic control of government.
New pattern of shareholding :
- After the proposed change in shareholding pattern, the Centre will own a 50 per cent stake and the rest will be held collectively by the states.
What is GSTN ?
- Goods and Services Tax Network (GSTN) is a not for profit, non-Government, private limited company.
- It was incorporated on March 28, 2013.
- 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 Rs. 10,00,00,000 (Rupees ten crore only).