Home Ministry to give security nod to GSTN
The Union Home Ministry is yet to give security clearance to the Goods and Service Tax Network (GSTN), the IT backbone of the Goods and Service Tax (GST).
Though the GSTN has been operational, it had not got the security clearance which is a mandatory requirement as it has private participation.
Security issue
The Union Finance Ministry is looking into the GSTN from the economic security’s perspective whereas the Union Home Ministry is examining any threat to national security by any of the stake holders in the company. Home Ministry has not decided time frame to grant clearance to GSTN. The procedure of grant of security clearance to the GSTN involves background checking of office bearers and others concerned.
About Goods and Services Tax Network (GSTN)
GSTN is a not for profit, non-Government, private limited company incorporated in 2013. The Union Government holds 24.5% equity in GSTN. It has been set up primarily to provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of Goods and Services Tax (GST).
All States including two UTs (Delhi and Puducherry) and the Empowered Committee of State Finance Ministers (EC) together hold another 24.5%. Balance 51% equity is with non-Government financial institutions-HDFC Bank Ltd (10%), HDFC Ltd (10%), ICICI Bank Ltd (10%), NSE Strategic Investment Corporation Ltd (10%) and LIC Housing Finance Limited (11%).
The Revenue Model of GSTN after GST rollout will consist of User Charge to be paid by stakeholders who will use the system and thus it will be a self-sustaining organization.
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Month: Current Affairs - July, 2017