The Union Cabinet has cleared a proposal to convert Goods and Services Tax Network (GSTN) into a government-owned company.

It approved increasing the Government ownership in GST Network and change in the existing structure with transitional plan.

There will be the acquisition of entire 51 per cent equity held by the Non-Government Institutions in GSTN equally by the Centre and the State Governments and allow GSTN Board to initiate the process for acquisition of equity held by the private companies.

Currently, the Centre and states together hold 49 per cent stake in the GST Network, the company that provides IT backbone to the new indirect tax regime.

The remaining 51 per cent is held by five private financial institutions.