The Union government on Wednesday considered the proposal to transform GST Network to a government-owned entity and change its existing structure.
A press release by cabinet stated that the government will transform GSTN’s structure by purchasing all 51% equity owned by entities like HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment Co, and LIC Housing Finance.
The proposal already has the consent of GST Council, led by Finance Minister Arun Jaitley. The new structure of equity constitutes 50% ownership by central government and the rest 50% to be dedicated to state governments.
There will be changed levied in the existing board of GSTN. The proposed board will be inclusive of 3 directors from both state and center, along with 3 independent directors to be nominated by the board of directors. Apart from this, the board will also have one chairman and one chief executive officer.
Earlier, the government had only 49% of the equity as it wanted to allow flexibility and freedom in implementing the GST efficiently. Later, with the enhanced role of GSTN, the government thought to transform it into a government-owned body
Finance Secretary Hasmukh Adhia was asked to examine the possibility of transferring GSTN to a 100% government company.