The all-powerful GST Council on Friday deferred a decision on levying a cess on sugar and referred the issue of incentivizing digital payments to a group of state finance ministers.
The panel, the highest decision-making body of the Goods and Services Tax (GST) regime, in its 27th meeting agreed to a proposal to convert the GST Network — the company that provides IT backbone to the new indirect tax regime — into a government-owned entity.
What is GSTN?
The GSTN is a private limited company floated to aid the rollout of the new indirect tax regime.
The company will provide information technology support to all stakeholders for the smooth implementation of the new taxation regime across the country and will be the repository of all information related to taxation and entities registered under GST.
The majority (51%) shareholding in the firm is with private entities including HDFC Bank, ICICI Bank, and LIC among others. The central government, jointly with state governments and Union Territories, own 49% in the company.