News Karnataka
Thursday, April 25 2024
Business News

GST network brought under anti-money laundering law

GST network brought under anti-money laundering law
Photo Credit : IANS

New Delhi: Aiming to plug tax evasion through fake billing, the Centre has brought the GST Network (GSTN) under the purview of the Prevention of Money Laundering Act (PMLA). This will give more power to the Enforcement Directorate (ED), the anti-money laundering agency, to act against tax evasion within GSTN.

The government through a gazette notification, notified the exchange of information between ED and GSTN under the Prevention of Money Laundering Act, 2002 (PMLA) to help in such kind of investigations.

The notification is regarding sharing of information between ED and GSTN under section 66(1)(iii) of PMLA. The Central Board of Indirect Taxes and Customs (CBIC) has been bullish on preventing tax evasion. CBIC chairman Vivek Johri had said last month that the government is serious towards curbing the practice of fake billing and fake invoicing and also identifying fake businesses. 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.

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