The Cabinet has approved increasing the government ownership in the Goods and Services Tax Network (GSTN) Corporation.
According to a press release, the government will buy out all the 51 percent equity in the GSTN owned by non-government entities, which include HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment Co and LIC Housing Finance.
The proposal to convert GSTN into a 100 percent government-owned company was earlier approved by the all-powerful GST Council.
The GSTN was incorporated as a private limited company on March 28, 2013 under the UPA government. It is a Section 8 company under the new Companies Act and is, therefore, a not-for-profit entity.
Under the restructured equity structure, 50 percent will be owned by the central government while the remaining 50 percent will be owned by state governments.
There will also be a change in the composition in GSTN’s board of directors.
Three directors from the Centre, three from the states and three other independent directors will nominated by the board of directors, along with one chairman and one CEO.
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