Government has issued a notification to bring goods and services tax network (GSTN) under the Prevention of Money Laundering Act, 2002. This will facilitate sharing of information or material which has been stored on GSTN with the PMLA authorities.
Earlier there have been quite number of cases related to fake Input tax credit or fake invoices with quantum of more than crores of rupees. Thus, by including the GSTN under the purview of PMLA will be considered as a significant measure by government to keep a look upon activities which results in major loss of revenue.
| SW Point of View: This insertion will empower the Enforcement Directorate (ED), the anti-money laundering agency, to take action against tax evasion within GSTN if they have the reason to believe that the provisions of the GST Act have been contravened. |
Source: Notification F. No. P.12011/2/2009-ES Cell-DOR Dated 07.07.2023
