The Union Cabinet chaired by Prime Minister Narendra Modi on September 26 in New Delhi approved the proposal to convert GST Network (GSTN) into a government-owned company.
The GST Council chaired by Finance Minister Arun Jaitley and comprising of state finance ministers, had in May agreed to a proposal to make GSTN a government owned company, with Centre owning 50% stake and states together holding the remaining of 50%.
“Government has decided to convert GSTN, which was collectively owned by Centre, states and some private institutions will now become a wholly government-owned company. The in-principal decision was taken earlier and the Cabinet approved the proposal today,” Finance Minister Jaitley said.
Cabinet approves change in the existing structure with transitional plan as following:
Acquisition of entire 51% of equity held by the Non-Government Institutions in GSTN equally by the centre and the State Governments and allows GSTN Board to initiate the process for acquisition of equity held by the private companies.
The restructure GSTN with 100 percent government ownership shall have equity structure between the Centre (50 percent) and the States (50 %).