The Union Cabinet on 12 April 2012 approved a proposal to set up a Special Purpose Vehicle (SPV) for Goods and Services Tax Network (GSTN) to help facilitate the smooth introduction of the new indirect tax regime.
GSTN SPV is to be incorporated as Section 25 not-for-profit private limited company in which strategic control would be held by the Centre. It will provide IT infrastructure and services to various stakeholders including the Centre and states.
The SPV will have an equity capital of Rs 10 crore, with both the Centre and states having stakes of 24.5 per cent each. Non government institutions would hold 51 per cent equity.
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