05.05.2018: Changes in GST share shareholding pattern update: CBEC release a press reference on 04.05.2018 regarding changes in GST Network shareholding updates. These changes in GSTN Owners pattern update is as follows:
Goods and Services Tax Network – Under Section 25 of the Companies Act, 1956 (Section 8 of the Companies Act, 2013) of the Special Purpose Vehicle (GSTN-SPV), the Government has been made as a Private Limited Company, Not Profit Company. India is on March 28, 2013, to provide IT infrastructure and services to central and state governments, taxpayers, and other stakeholders for the implementation of goods and services tax (GST) in India.
What is the shareholding pattern of GSTN?
At present, the central government and state governments are holding 24.5% equity shares respectively. The remaining 51% is owned by NGOs and various agencies, under the strategic control of the GSTN government. However, In a large-scale GST system, registration, returning, tax payment, processing of refunds is IT-driven. Also, GSTN deals with large-scale exchange level information of millions of business organizations, including export and import related information. At the same time considering the nature of ‘state’ work done by GSTN, the council assumed that GSTN would be converted to a wholly-owned government company.
Considering the above considerations, the Council decided:
The total 51% shares of non-governmental organizations in GSTN will cost Rs. 5.1 crores. This will have an equal share of the Central and State Governments. Therefore GSTN Boards to start the equity acquisition process obtained by private companies soon. Also, GSTN Board will be allowed to continue existing workers for a period of up to five years, and to have them employed regularly, they will have the flexibility to employ people according to terms and conditions as they are used by GSTN employees.
On the other hand, existing financial commitments given to the Center and states to share O & M costs to GSTN to the capital and IT system will continue.
This article is based on Changes in GSTN’s shareholding pattern updates. In other words, the GST Network shareholding pattern is changed now. Find here GSTN Owners pattern updates and all about what is the shareholding pattern of GSTN.
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