Setting up of Special Purpose Vehicle to be called Goods and Services Tax Network (GSTN SPV)
The Cabinet has approved a proposal to set up a Special Purpose Vehicle (SPV) namely Goods and Services Tax Network SPV (GSTN SPV) to create enabling environment for smooth introduction of Goods and Services Tax (GST). GSTN SPV will provide IT infrastructure and services to various stakeholders including the Centre and the States.
The GSTN SPV would be incorporated as a Section 25 (not-for-profit),
non-Government, private limited company in which the Government will
retain strategic control. It would have an equity capital of Rs. 10 crore, with
the Centre and States having equal stakes of 24.5% each. Non Government
institutions would hold 51% equity. No single institution would hold more that
10% equity, with the possibility of one private institution holding a maximum
of 21% equity.
GTSN SPV would have a self-sustaining revenue model, based
on levy of user charges on tax payers and tax authorities availing its services.
While the SPV's services would be critical to actual rollout of GST at a future
date, it is also expected to render valuable services to the Centre / State tax
administrations prior to the GST implementation.
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SH/RK/SK
(This is an archive of the press release and has not been edited by our staff.)