Subramanian Swamy, BJP leader has raised strong objections for the majority stake owned by the private players in the company formed during UPA to manage and control the accounting and collection of GST and has urged the Prime Minister to ensure that it is replaced by a government-owned structure.
In a letter to Prime Minister Narendra Modi, Mr. Swamy asked him to subject Goods and Services Tax Network (GSTN) to a “close second look” and “thorough scrutiny”, questioning how a private entity can be allowed access to “sensitive” information without security clearance.
By referring the present structure, that will manage and control the accounting and tax collection of GST, he further 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.
He further pointed out, around Rs. 4,000 crores in expenses and fees for its preliminary exercises, he asked why “private profit making entities have any stake, and that too majority stake” in a Section 25 company, which is a not-for-profit organization.
He had claimed,that the Home Ministry has not even been consulted and neither approved GSTN operators security clearance to allow them access to tax data. In fact that it was never placed before Home Ministry for security clearance is shocking,” he said.
The letter explains that,the GSTN has appropriated nearly Rs. 4000 crores in expenses and fees for its preliminary exercises Hence, I urge you to subject GSTN to a close second look and thorough scrutiny, said Swamy.
