An extraordinary going by GST Council; More decisions to be made tomorrow

Attention is invited to a news-item titled “Swamy writes to PM against GSTN, bats for govt-owned entity” published in the daily “The Hindu”, New Delhi dated 11-08-2016. Referring to ownership details of the GSTN company, that will manage and control the accounting and tax collection of GST, he said central and state governments will jointly have only 49 per cent stake in it and rest with private entities like HDFC Bank, ICICI Bank and LIC Housing Finance Limited, that have foreign shareholding. Mr. Swamy, a Member of Parliament, said, “All data management for computation of tax share, will be by GSTN”. “It was a swift and secret move in 2013 to float this company with 51 percent private shares,” he pointed out. Mr. Swamy also claimed that a close look at the private partners reveals that entities such as the HDFC Bank, ICICI Bank and LIC Housing Finance Limited have shareholding of several foreign investment companies. He said in LIC Housing Finance Limited, of 59 per cent private shares, Abu Dhabi Investment Authority, Bank of Muscat, Mawer International Equity Fund, lClCl Prudential are the major private shareholders.
2. I recall that the objections were also raised by members of TMC and BJD in the Lok Sabha about the major shareholding of private entities in GSTN during the Budget Session of Parliament. Thus, why there is no shareholding in GSTN of State Bank of India, which is the largest Public Sector Bank in the country? If professional expertise is the criterion then there are several Public Sector Undertakings like Coal India, ONGC, SAIL, MMTC, NTPC who are paying significant role in our economy, however, these companies have not been associated with the functioning of GSTN.
3. The changes relating to the shareholding in the formation of GSTN should be effected in the public interest.

*Pankaj Jaroli

Pankaj Jaroli 04/10/2016