GST Council meet: Big move! GST-Network to turn govt entity, not to remain private
GST Council has approved making GST-Network a government entity by taking over 51% stake that was held by private entities, revealed FM Arun Jaitley today. finance minister added, "Central government to own 50% in GST-Network; states to collectively hold the remaining 50%."
GST Council has approved making GST-Network a government entity by taking over 51% stake that was held by private entities, revealed FM Arun Jaitley today. Finance minister added, "Central government to own 50% in GST-Network; states to collectively hold the remaining 50%." West Bengal FM Amit Mitra also revealed that states are opposing levy of sugar cess over and above the GST rate. Arun Jaitley also revealed that the GST Council has referred issue of giving 2% incentive for digital payments to a 5-member committee. He added that the GST Council has also deferrred the decision on imposing cess on sugar; the issue has been referred to group of five state FMs.
Finance Secretary Hasmukh Adhia in his reaction said that the new system of single monthly return for GST to come into force in six months.
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The panel, the highest decision making body of the Goods and Services Tax (GST) regime, in its 27th meeting agreed to a proposal to convert the GST Network -- the company that provides IT backbone to the new indirect tax regime -- into a government-owned entity.
Announcing the decisions taken today, Finance Minister Arun Jaitely, who chaired the meeting conducted through a video conferencing, said a road map for introduction of simplified return filing has been decided. Jaitley said while most states were in favour of giving a 2 per cent incentive if all payments are paid digitally or through cheques, some wanted a small negative list and so the issue will be referred to a five-member group of state finance ministers.
Another group of ministers (GoM) would look at the issue of levy of cess on sugar beyond the GST tax rates.
The FM said the GST Network or GSTN currently is 24.5 per cent owned by the central government and a similar percentage is held by state governments collectively. The remaining 51 per cent is with five private financial insitutitions -- HDFC Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and LIC Housing Finance Ltd.
The council agreed to a proposal of buying out the stake of private entities to make GSTN a government-owned entity, he said adding the central government will own 50 per cent and the remaining would be collectively held by state governments.