GSTN gets security clearance

The home ministry has given security clearance to the GSTN, the information technology backbone of the Goods and Services Tax regime, paving the way for its operationalisation soon. Security clearance to the Goods and Services Tax Network, a not-for-profit private limited company, was delayed as the home ministry was examining threat perception to national security from any of the stakeholders.

The GST, which replaces a host of taxes levied by the central and state governments, has come into force from July 1. In the GSTN, five private institutions have 51% equity -HDFC Bank Ltd (10%), HDFC Ltd (10%), ICICI Bank Ltd (10%), NSE Strategic Investment Corporation Ltd (10%) and LIC Housing Finance Limited (11%).

The central government has 24.5% equity in the GSTN, whereas state governments, two Union territories and the empowered committee of state finance ministers together hold another 24.5% stake in it.

The procedure for granting security clearance to the GSTN involved background checking of its office-bearers and others concerned.The GSTN has been working overtime to ensure a smooth registration, and all the tax assessees have been given a provisional ID, using which they can start transacting business with the implementation of the GST.