GST Network May be Converted into a Govt Company | CORPORATE ETHOS

GST Network May be Converted into a Govt Company

By: | May 4, 2018

May 4: The possibility of converting GST (Goods and Services Tax) Network into a government company is being examined by the GST Council. Presently, HDFC Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and LIC Housing Finance Ltd hold 51% stake in GSTN which was incorporated on March 28, 2013 by the erstwhile UPA regime. The remaining 49 per cent stake is with the Centre and states.

Jaitley had earlier this month asked Finance Secretary Hasmukh Adhia to “examine the possibility” of converting GSTN into a majority government company or a 100 per cent government company. GSTN provides the IT backbone for the new indirect tax regime.

The GST Council Meeting to be held on Friday will consider introduction of simplified tax return form. Last month, GST collections hit a record high by exceeding Rs 1 lakh crore milestone in April.

The government mopped up Rs 1.03 lakh crore in GST collections last month.

The new indirect tax regime, which was rolled out on July 1 last year, had earned a revenue of Rs 7.41 lakh crore in entire 2017-18. A decision on return simplification is on the agenda with the Sushil Modi-led group of ministers (GoM) putting the three models of new return form for discussion before the council, an official said, adding GSTN proposal will also come up for consideration.