GST Network operating expenses to be funded by user fee

By | October 7, 2016

The Narendra Modi government’s plans to roll out GST from April 1, 2017. The GST Council, chaired by Union finance minister Arun Jaitley, is already working towards finalising the structure of the new tax law and two rounds of meetings are already concluded.

GSTN has hired Bengaluru-based Infosys on a project worth Rs 1,380 crore to buy and instal the IT infrastructure required for the network to function and to maintain it for five years. Of this, Rs 550 crore is towards capital cost. GSTN will reportedly subscribe to a loan to fund the expenses, and the repayment liability will be synced with the user charge. GSTN was incorporated on March 28, 2013. At present, the central government holds 24.5% equity in GSTN and all states hold another 24.5%. Balance 51% equity is with non-government financial institutions, including LIC Housing Finance, ICICI Bank, HDFC, HDFC Bank and NSE Strategic Investment Corporation.

GSTN has been initially funded through a one-time non-recurring grant in-aid of Rs 315 crore from the Centre towards expenditure for the initial setting up and functioning of the SPV for a three-year period after incorporation. After rolling out of GST, the revenue model of GSTN shall consist of user charge to be paid by stakeholders who will use the system and thus, it will be a self-sustaining organisation. Source – [07-10-2016]

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Topic -GST



Model GST Law

Model GST Law


GST Overview

Goods and Services Tax (GST): An Overview

Integrated Goods & Service Tax (IGST) Act Overview

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Time of Supply

Place of Supply of Goods and Service under GST

Valuation in GST

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Job Work under Goods & Service Tax (GST)

Electronic Commerce under Goods & Service Tax (GST)


Transition to GST

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GST Draft Invoice Rules released by CBEC

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Input Tax Credit

Input Tax Credit under Goods & Service Tax (GST)

Concept of Input Service Distributor in Goods & Service Tax (GST)



GST Payment of Tax

GST Draft Payment Rules Released by CBEC

GST Draft Payment formats Released by CBEC



Refund under GST

Draft GST Refund Forms released by CBEC

Draft GST Refund Rules released by Govt



Returns Process and matching of Input Tax Credit under GST

Draft GST Return Rules Released by Govt

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Assessment and Audit

Assessment and Audit under GST


Inspection, Search, Seizure and Arrest

Inspection, Search, Seizure and Arrest under GST


Offences, Penalty, Prosecution & Compounding

Offences, Penalty, Prosecution & Compounding in GST


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Demands and Recovery under GST


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Appeals, Review and Revision in GST


Advance Ruling

Advance Ruling in Goods and Service Tax (GST)


Settlement Commission

Settlement Commission in Goods and Service Tax (GST)


GST Portal

Frontend Business Process on GST Portal

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