GSTN - No security clearance was obtained in respect of private institutions

By Vijay Kumar

A Member of the Lok Sabha asked the following questions:

a) whether Government is aware that Goods and Services Tax Network (GSTN), a Special Purpose Vehicle (SPV) providing IT infrastructure and services to various stakeholders, is dominated by private and foreign stakeholders;

b) if so, the details thereof and the reasons therefor; and

c) whether these private institutions have security clearance by the Government, if so, the details thereof and if not, the reasons therefor?

Mr. Santosh Kumar Gangwar, the Minister of State for Finance answered:

a) to b): As recommended by Empowered Committee of State Finance Ministers (EC), the creation of GSTN-SPV was approved by the Cabinet in its meeting held on 12.04.2012 as a non-Government, not for profit (Section 25), private limited Company to be registered under the Companies Act, 1956, with 49 percent equity held by the Central Government and State Governments collectively and 51 percent held by non-Government institutions. Accordingly, GSTN was incorporated on March 28, 2013. The shareholding pattern ensures that Centre individually and States collectively are the largest stakeholders at 24.5% each. In combination, the Government shareholding at 49% far exceeds that of any single private institution.

(c): No security clearance was obtained in respect of the private institutions mentioned above.

Dr. Subramanian Swamy had said that GSTN cannot take off unless you first get security clearance.