GST under PMLA can be another scope for ED to harass, says Delhi Minister Atishi

GST under PMLA can be another scope for ED to harass, says Delhi Minister Atishi

After the 50th GST Council meeting, Delhi Minister Atishi raised concerns over the inclusion of GST under the Prevention of Money Laundering Act (PMLA). She questioned the decision and argued that it could give the Enforcement Directorate (ED) another tool to harass and arrest people. A gazette was issued on July 7, bringing the entire GST system under the PMLA. Atishi emphasized her opposition to this move and demanded a discussion on the matter. However, she stated that the Centre and FM Sitharaman are not willing to engage in a discussion. Punjab Finance Minister Cheema also expressed concerns, stating that bringing GST under the PMLA ambit poses a significant threat to small traders and may lead to tax terrorism. The government’s decision to include the Goods and Services Tax Network (GSTN) under the PMLA aims to prevent tax evasion through fake billing. The GSTN is responsible for handling the technology backbone of the indirect tax regime and stores all GST-related information, including returns and tax filings. The Finance Ministry amended a 2006 notification to facilitate the sharing of information between the GSTN, Enforcement Directorate, and other investigative agencies. These amendments were made under Section 66 of the PMLA, which pertains to the disclosure of information. The GST Council, chaired by the Union Finance Minister and comprising ministers from every state and Union Territory, discussed the issue. However, concerns raised by Atishi and Punjab Finance Minister Cheema remain unaddressed.

TIS Staff

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