Lagatar24 Desk
New Delhi, July 9: The Central Government has taken a big decision regarding the Goods and Services Tax (GST). The government has brought GST under the purview of the Prevention of Money Laundering Act (PMLA). After this decision, ED (Enforcement Directorate) will clamp down against traders, businessmen and firms involved in GST theft and falsification of documents. Not only this, if irregularities are found in giving GST and falsification of documents, ED will also take action against them under money laundering. This will reduce GST evasion to a great extent.
According to the notification of the Ministry of Finance, the complete information about the data of GST network will be given to ED. It is written in the notification that information will be shared between ED and GSTN under section 66(1) (iii) of PMLA so that ED can take action against traders, businessmen and firms involved in GSAT theft and rigging of documents. Also, if irregularities are found, action can be taken under money laundering. With the intervention of ED, GST evasion through fake billing can be stopped.
The Central Government passed the Prevention of Money Laundering Act in 2002. PMLA was implemented after three years on 1 July 2005. Its purpose is to prevent money laundering and confiscate the assets involved. That is, the methods of converting black money to white have to be banned. However, it was amended from time to time. In which the powers of the central agency increased. Under the PMLA, the ED is empowered to arrest the accused, confiscate his property, strict conditions for him to get bail after arrest and the rules such as the statement recorded before the investigating officer to be admissible as evidence in the court, make it powerful.
