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Jun 05, 2017 09:49 PM IST | Source: PTI

No decision yet on giving security clearance to GSTN

The Goods and Services Tax Network (GSTN), a not-for-profit private limited company, has 51 percent equity of five private institutions.

The Centre is yet to take a decision on providing security clearance to the GSTN, the Information Technology backbone of the Goods and Services Tax (GST), as it is examining various issues concerning it.

"We are still examining the GSTN issue," a Home Ministry official said.

The Goods and Services Tax Network (GSTN), a not-for-profit private limited company, has 51 percent equity of five private institutions -- HDFC Bank Limited (10 percent), HDFC Limited (10 percent), ICICI Bank Limited (10 percent), NSE Strategic Investment Corporation Limited (10 percent) and LIC Housing Finance Limited (11 percent).

The central government has 24.5 percent equity in GSTN, whereas state governments, two Union territories and an empowered committee of state finance ministers together hold another 24.5 percent stake in it.

An organisation representing indirect tax employees has raised concerns over the management pattern of the GSTN with a majority stake in private hands.

It had said since the GSTN is funded by the Central and State governments, there is no justification in entrusting its management to private individuals with heavy salary and allowances.

The Bharatiya Janata Party (BJP) MP Subramanian Swamy has also opposed the majority stake for private entities in the GSTN and has written to Prime Minister Narendra Modi over it.

Recently, the Centre had rejected a Right To Information (RTI) plea seeking details of security clearance given to the GSTN citing national security.

tags #GST #India

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