Image Source: Moneycontrol
New Delhi: The 27th Goods and Services Tax (GST) Council meeting was held on May 4 where a decision was taken to alter the present ownership structure of the GST Network (GSTN).
Currently, the central and the state governments hold a 49 percent share in the ownership of the GSTN (Centre-24.5 percent, state-24.5 percent). The remaining 51 percent of the GSTN was divided among other entities.
Finance Minister Arun Jaitley said that a few weeks ago, he had suggested that the government take over the 51 percent though purchase and split the share between the centre and the states.
The proposal was discussed by the council at length, following which it was agreed that the government purchase the 51 percent share from the private entities. The central government will hold 50 percent of the ownership while the states will collectively hold the other 50 percent, said Jaitley.
Jaitley also added that the 50 percent that is to be divided among the states, will be apportioned on a pro-rata basis according to their GST ratios.
