Centre Issues Notification to bring GSTN under Prevention Of Money Laundering Act To Plug Tax Evasion
The Central Government on Saturday issued a notification to bring the Goods and Services Tax Network (GSTN) under the Prevention of Money Laundering Act (PMLA) with the aim to plug tax evasion through fake billing. With the implementation of the said order, the information stored on the GST Network can now be shared under the PMLA Act and it will give more power to...
The Central Government on Saturday issued a notification to bring the Goods and Services Tax Network (GSTN) under the Prevention of Money Laundering Act (PMLA) with the aim to plug tax evasion through fake billing.
With the implementation of the said order, the information stored on the GST Network can now be shared under the PMLA Act and it will give more power to the Enforcement Directorate and the anti-money laundering agency to act against tax evasion within GSTN.
"In the exercise of the powers conferred by clause (ii) of sub-section (1) of section 66 of the Prevention of Money-laundering Act, 2002 (15 of 2003), the Central Government, being satisfied that it is necessary in the public interest to do so, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance, Department of Revenue, published in the Gazette of India, Extraordinary, Part II, "Section 3, Sub-section (i), vide number G.S.R. 381(E), June 27, 2006," the official notification read.
"In the said notification, after the serial number (25) and the entry relating to it, the following serial number and entry shall be inserted, namely (26) Goods and Services Tax Network," it added.
PMLA was enacted to tackle terror funding and drug trafficking. The notification will now facilitate sharing of information or material in possession between ED and GSTN, to check any violations of GST provisions.