Govt guarantee for GSTN's Rs 550-crore loan from IDFC

Centre gives long-awaited guarantee; will pay the interest till tax is operational

The GST Network (GSTN), a private body for the information technology (IT) backbone of the coming goods and services tax (GST), is to borrow Rs 550 crore from IDFC Bank, interest on which will be paid by the government till the new indirect tax system is rolled out.

After that, GSTN will bear the burden of interest from the revenues it will get through user charges of the network.

"We have received the government guarantee and now the Rs 550-crore loan from IDFC Bank will go through. This will be used mainly towards expenditure on salaries and payment to Infosys,