Changes in shareholding pattern of GSTN – Press release dated 4th May 2018

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Ankita Khetan | May 4, 2018 | Views 1645190

Changes in shareholding pattern of GSTN – Press releasedated 4th May 2018

 


PRESS RELEASE

04th May 2018

Change in the Shareholding Pattern of GSTN

The Goods and Services Tax Network – Special Purpose Vehicle (GSTN-SPV) wascreated as a private limited, not-for-profit company under Section 25 of the Companies Act,1956 (Section 8 of the Companies Act, 2013) by Govt. of India on 28th March, 2013 with anobjective to provide shared IT infrastructure and services to Centre and States Governments,tax payers and other stakeholders for implementation of Goods and Services Tax (GST) inthe country.

Presently, the Central Government and State Government are holding 24.5% equityshares respectively and the remaining 51% are held by non-Governmental institutions andthrough various mechanisms, GSTN is under strategic control of government. Majority of theGST processes including registration, filing of returns, payment of taxes, processing ofrefunds is IT driven and GSTN is handling large-scale invoice level data of lakhs of businessentities including data relating to exports and imports. Considering the nature of statefunction performed by GSTN, Council felt that GSTN be converted into a fully ownedgovernment Company.
In view of the above, Council decided:
Acquisition of entire 51% of equity held by the Non-Governmental Institutions in GSTNamounting to Rs. 5.1 crore, equally by the Centre and the States governments and allowGSTN Board to initiate process for acquisition of equity held by the private Companies; andGSTN Board shall be allowed to continue the existing staff at existing terms and conditionsfor the a period upto five years, and shall have the flexibility of hiring people throughcontract on the terms and conditions similar to those used by GSTN till now while hiringregular employees.
The existing financial commitments given by Centre and States to GSTN to share thecapital and O&M cost of the IT Systems shall continue.

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