The Cabinet on Wednesday Okayed the proposal of converting GST Network (GSTN) into a government entity, said Union Finance Minister Arun Jaitley.
The proposal had earlier received a nod from the Goods and Services Tax Council (GSTC).
Explaining the decisions taken during the Cabinet meeting, Jaitley said that the stake of the entity will be equally shared between the Centre and the states on pro-rata basis in the new structure.
As of now, Centre and states jointly hold 49 percent stake in the GST Network, the company that offers IT support to the new indirect tax regime. The remaining 51 percent stake is owned by five private financial institutions namely HDFC Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and LIC Housing Finance Ltd.
As a private limited company, GSTN was established on March 28, 2013, under the UPA government. It is formed in adherence to Section 8 under the new Companies Act and hence is a not-for-profit entity.