Considering GST Network is a repository of such huge data, the government is mulling over a plan to convert GSTN into a state-run company.
Considering GST Network is a repository of such huge data, the government is mulling over a plan to convert GSTN into a state-run company. The government wants to hold 100 percent stake in the company, PTI reported citing unidentified officials. However, the final call about the same will be taken by the GST Council, headed by Jaitley and comprising state counterparts, in its next meeting, unidentified sources told PTI. GST Network, the company that handles IT infrastructure for the Goods and Services Tax regime, is now planning to take plunge into data analytics in order to catch tax evaders. Finance Secretary Hasmukh Adhia has been asked by Finance Minister Arun Jaitley to examine any possibility of converting GSTN into a majority government company or a 100 percent government company, the report said.
HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment Co and LIC Housing Finance Ltd are the five private financial institutions which currently hold 51 percent stake in GST Network. GSTN was first incorporated on 28 March, 2013 during the UPA regime. The rest of the 49 percent stake is with Centre and states.
Meanwhile, the Asian Development Bank (ADB) has estimated that economic growth rate to rebound to 7.3 percent in the ongoing fiscal year and grow at 7.6 percent further in FY20. The positive projections were made on the back of significant structural reforms such as GST and clean banking. ADB, in its Asian Development Outlook 2018, has praised the Modi-government’s GST introduction. It said that economic growth will improve as the productivity of the new tax regime improves. Other global rating agencies such as Moody’s, S&P and Fitch have also credited India for GST. All have said that an increase in revenues from tax collections will push up growth in the country, and this will have a positive impact on GDP growth.