Change in the Shareholding Pattern of GSTN attached
Currently Central Government and State Governments holds 24.50% each and remaining 51% are held by Non-Government Institutions.
Council has decided to acquire entire 51% equity held by Non-Government Institutions in GSTN equally by the Center & the State governments.
Post acquisitions GSTN Board shall be allowed to continue the existing staff at existing terms and conditions for the period upto 5 years.
The goods and services Tax Network – Special purpose vehicle ( GSTN -SPV) was created as a limited, not-for-profit company under section 25 of the companies Act. GSTN to be converted into a fully Government owned Company.
Shareholding Pattern GSTN, Change in the shareholding pattern of GSTN
The goods and services Tax Network – Special purpose vehicle ( GSTN -SPV) was created as a limited, not-for-profit company under section 25 of the companies Act, 1956 (section 8 of the companies Act, 2013 with an objective to provide shared IT infrastructure and services to center state Governments, tax payers and other stakeholders for implementation of goods and services Tax (GST)in the country.
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 mechanism, GSTN is under strategic control of Government.
Majority of the GST processes including registration, filling of returns, payment of taxes, processing of refunds is IT driven and GSTN is under is handing large- scale invoice level data of lakhs of business entries including data relating to exports and imports. considering the nature of state function performed by GSTN, council felt that GSTN be converted into a fully owned government company.
In view of the above, Council decided:
Acquisition of entries 51% of equity held by the Non-Governmental to RS 5.1 crore, equally by the center and states government and allow GSTN Board to initiate process for acquisition of equity held by the private companies; and GSTN Board shall be allowed to continue the existing staff at exiting terms and conditions for the a period upto five years, and shall have flexibility of hiring people through contract on the terms and conditions similar to those by GSTN till now while hiring regular employees.
The existing financial commitments given by center and states to GSTN to share the capital and O&M IT system shall continue.
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