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Delay in GSTN security clearance not to affect GST rollout: Arun Jaitley

These are all procedural matters, they go on, Jaitley said

Press Trust of India  |  New Delhi 

Finance Minister Arun Jaitley
Finance Minister Arun Jaitley

Finance Minister on Tuesday said (GST) rollout will not be impacted by any delay in security clearance to Network, the IT backbone provider for the new system.

"It (GSTN) is already functioning," he told reporters here. Security clearance to is a "procedural matter".

"These are all procedural matters, they go on," he said. "That doesn't defer the (rollout)."

It won't derail "the fate of Constitution amendment", he said.

The Constitutional (101st Amendment) Act 2016 mandates introduction of a national in India.

The Centre and states have agreed to roll out the new regime, which will subsume excise, service tax, VAT and other local levies, from July 1.

However, the home ministry has still not given security clearance to GSTN, which is a non-government, private limited company, incorporated on March 28, 2013.

The government of India holds 24.5 per cent equity in and all states, including NCT of Delhi and Puducherry, and the Empowered Committee of State Finance Ministers, together hold another 24.5 per cent.

The balance 51 per cent equity is with non-government financial institutions -- HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment Co and LIC Housing Finance Ltd.

BJP MP Subramanian Swamy has on multiple occasions raised concerns over GSTN's shareholding pattern, saying it might compromise data security.

First Published: Tue, June 20 2017. 15:22 IST