The Centre on Saturday (July 7) issued a notification to include the Goods and Services Tax Network (GSTN) under the ambit of the Prevention of Money Laundering Act (PMLA). The above notification was issued under Section 66 of the PMLA. The disclosure of information provided will facilitate sharing of information between the GSTN, Enforcement Directorate, and other investigative agencies.
As per the latest notification, the FIU and the ED will also share information with the GSTN if they find that any GST assessee is involved in suspicious forex transactions. GST offences such as taking fake input tax credits, fake invoices, etc. will also be covered under the Prevention of Money Laundering Act. Thus, the move would enable the recovery of Goods and Services Tax (GST) evaded through money laundering.
In November last year, the government added 15 agencies to this list, including the Competition Commission of India, National Investigation Agency, Serious Fraud Investigation Office, State Police, Director General of Foreign Trade, Ministry of External Affairs, National Intelligence Grid, Central Vigilance Commission among others for sharing of information between these agencies and the Enforcement Directorate.
With this, the GSTN is among those entities that have been mandated to share information with the Enforcement Directorate (ED) and the Financial Intelligence Unit (FIU) under the PMLA Act.
Likewise the ED and the FIU, agencies that need to share information include the Competition Commission of India, Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority of India, Serious Fraud Investigation Office, and Director General of Foreign Trade. This list is updated from time to time.