GST Network was earlier not seen as a safe and secure method of developing the database from a private based organization which would further infuse non-reliable views over the structure. GST-Network Chairman Navin Kumar told that “all measures have been taken to protect sensitive tax information and the government will have strategic control over it.”
The private keeping of tax data and almost 51 percent of the stake in private financial institutions has given a questioning signs over the structure, however, the government would be having 24.5 percent stake and the same goes for state government also.
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BJP leader Subramanian Swamy argued that “how a private firm can be allowed access to “sensitive” tax information without security clearance.”
“The rules of business specify that no meeting of the board can take place unless 50 percent of the directors are from the government. Which basically means that no decision can be taken against the wishes of the government. So this is the strategic control that they exercise.” he added
GSTN will be operative in a private company with minimal interference of Public Sector Units and all the significant decisions will be taken by a special resolution in a general meeting in which 75 percent of the votes should be extracted for a decision.
“There are many large IT projects already in operation. Take the case of Income Tax. Who is doing the Income Tax project– it is Infosys and TCS. What are Infosys and TCS, they are private companies. Go to any VAT projects in the states, most of them are being done by either TCS or Wipro,
“So is the I-T data sensitive or not? That is with these private companies. Now look at GSTN. GSTN is structured as a private company over which government has a strategic control. No decision can be taken without its consent… So what is the concern? If data can rest with TCS or Wipro without any problem, why is a question being raised about GSTN handling such data? Because here the government has a presence on our board. So there is no problem.” Kumar added
