Business

GST Council Meet: GSTN To Be Made A Government Entity By Acquiring 51% Market Stake

News World India | 1
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| May 4 , 2018 , 16:09 IST

Finance Minister Arun Jaitley along with the GST council have been organising regular meets for discussing the prospective changes in the Good and Services Tax. During the 27th meeting on Friday, bringing a change in the ownership structure of GSTN was discussed.

Currently, the government owns 49% of the Goods and Services network whereas the rest is held by the private entities. FM has suggested a reversal in the market share by acquiring the total of 51% stake leaving the rest to private ones and subsequently dividing it between centre and state equally.

"Eventually Central govt should hold 50% and state govts will hold 50% collectively. The collective share of state govts will be pro-rata divided among the states as per their GST ratios," the finance minister stated while addressing the media after the GST meet.

While the ministers have expressed satisfaction over revenue growth through GST in the past year, several items were on their agenda for in-length discussions during the meet. The council has deferred the decision on imposing cess on sugar as the issue has been referred to a group of five state Finance Ministers.

"Sugarcane farmers are in deep distress. A separate group of 5 ministers within 2 weeks will make a recommendation to meet the contingency of this kind when the cost of a commodity is higher than its selling price. Committee will be announced within next 2 days," Arun Jaitley said.

Among the other important matters discussed at the GST meet included the issue of giving 2 percent incentive for digital payments which was referred to a 5-member committee and a new system of single monthly return for GST that comes into force in six months.