Goods and Services Tax Network (GSTN)

  • It is a not for profit, non-Government, private limited company incorporated in 2013.
  • The Government of India holds 24.5%equity in GSTN
  • All States including NCT of Delhi and Puducherry, and the Empowered Committee of State Finance Ministers (EC), together hold another 24.5%.
  • Balance 51% equity is with non Government financial institutions.
  • The Company has been set up primarily to provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of the Goods and Services Tax (GST).
  • After rolling out of GST, the Revenue Model of GSTN shall consist of User Charge to be paid by stakeholders who will use the system and thus it will be a self-sustaining organization
New Changes:
  • GST Council has approved proposal to convert GST Network (GSTN) into government entity from current private entity status by taking over stakes held by private entities.
  • Why this change?
  • Majority of Goods and Services Tax (GST) processes including registration, filing of returns, payment of taxes, processing of refunds is IT driven and mainly through GSTN.
  • For this, GSTN handles large-scale invoice level data of lakhs of business entities including data relating to exports and imports.
  • Considering nature of state function performed by GSTN, it was felt that the network should be converted into fully government-owned company.

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