GST network brought under anti-money laundering law to plug tax evasion

Aiming to plug tax evasion via pretend billing, Centre has brought the GST Network (GSTN) under the purview of Prevention of Money Laundering Act (PMLA).

This will give extra energy to the Enforcement Directorate (ED), the anti-money laundering company, to act towards tax evasion inside GSTN.

The authorities via a gazette notification, notified the change of knowledge between ED and GSTN under the Prevention of Money Laundering Act, 2002 (PMLA) to assist in such type of investigations.

The notification is concerning sharing of knowledge between ED and GSTN under part 66(1)(iii) of PMLA.

The Central Board of Indirect Taxes and Customs (CBIC) has been bullish on stopping tax evasion.

CBIC chairman Vivek Johri had mentioned final month that the federal government is severe in direction of curbing the observe of pretend billing and pretend invoicing and in addition figuring out pretend companies.

PMLA was enacted to sort out terror funding and drug trafficking.
The notification will now facilitate sharing of knowledge or materials in possession between ED and GSTN, to examine any violations of GST provisions.

(With inputs from IANS)