The Goods and Services Tax Network is a very complex project, Infosys Chief Executive Officer Vishal Sikka said on Thursday after his meeting with Finance Minister Arun Jaitley to discuss the development of the software for the project, The Financial Express reported. The GSTN is a private company which has been given authority over creating the necessary information technology infrastructure for the tax.
Sikka said the Narendra Modi-led government is looking to address the “pockets of weak preparedness” for the GST before its rollout in April 2017, The Indian Express reported. “It is going to be a hell of a challenge. We know it is worrying sitting back there, but we are going to be ready,” he added.
The central government holds a 24.5% stake in the GSTN while state governments hold another 24.5%, according to Bloomberg-Quint. The remaining 51% is held by companies such as HDFC Bank, ICICI Bank and LIC Housing Finance. However, the GSTN has been criticised by Bharatiya Janata Party leader Subramanian Swamy, who says the government should not be a minority partner in the project.
The meeting between Sikka and Jaitley comes three days after the Union Cabinet notified and approved the formation of the Goods and Services Tax Council, the body that will oversee various issues regarding the new uniform tax regime. The GST will bring in a single tax rate to replace India’s complicated current rules, which include Central excise duty, service tax, additional customs duties, value added tax, entertainment tax and so on. It will replace 17 indirect tax levies. The Centre believes this will help create a unified market in the country, avoiding double taxation and increase compliance.
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