Private players will be offered 51% stake in the special purpose vehicle for GST in IT infrastructure to ensure that all stakeholders under GST have a say on the network?s operation. The Centre and state governments will own 24.5% each in the SPV.
The proposed goods and service tax network (GSTN) will provide interface to all stakeholders and avoid evasion in indirect taxation systems once the GST comes into place. According to sources, no corporate or group would be allowed to have more than 20% stake in the SPV so that the Centre?s holding could remain the highest. The NSDL has been given the task to engage private players for the IT infrastructure. ?We are preparing a Cabinet note for GSTN. After getting the Cabinet?s nod, the IT infrastructure for the GST could be prepared,? a finance ministry official said.
After the Cabinet?s go-ahead, pilot projects would start running. ?Through these pilots projects, real time experience for running IT infrastructure would be known and deficiency can be corrected,? the official said. However, the bone of contention is the profit that would be earned by companies for operating the IT infrastructure, on which revenue department is working.
Earlier in August, the empowered committee of state finance ministers gave its in-principle approval for creation of the portal GSTN. An SPV was decided to be set up based on the recommendations made by a group chaired by Nandan Nilekani.
After the introduction of GST, the IT infrastructure will be a common portal for returns, registration, payments and for MIS (monthly income scheme). The indirect taxes like customs, service tax, excise and VAT will be using the same taxpayer identification.
In the Budget session, the government had introduced GST constitutional amendment Bill in Parliament for conferring simultaneous powers to the Centre and states to levy taxes on goods and services. However, many states, mainly ruled by the BJP, are against the Centre?s imposing of VAT and other local levies, which are in their domain.
The implementation of GST has been hanging fire for last four years and is likely to miss the April deadline. The proposed GST will subsume most indirect taxes like excise duty and service tax at the central level and VAT on the state front, besides local levies. The constitution amendment is necessary as a number of taxes fall in the states? purview, while some come under the Centre?s ambit. To come into effect, the Bill has to be passed by a two-thirds majority in both Houses and ratified by at least 15 state Assemblies.