Govt allows ED to share data with GSTN, move to help recovery of GST

The government has amended provisions of the Money Laundering Act to allow enforcement directorate (ED) to share information with GST Network. The move would help recovery of Goods and Services Tax (GST) evaded through money laundering.

GSTN handles the technology backbone of the indirect tax regime and is the repository of all GST-related information, including returns, tax filing and other compliances.

As per the amendment to the provisions of Prevention of Money Laundering Act (PMLA), 2002, GSTN has been included in the list of entities with which ED will share information.

The Prevention of Money Laundering Act (PMLA) is a law that was enacted in India in 2002 to combat money laundering. The PMLA gives the Enforcement Directorate (ED) the power to investigate and prosecute money laundering cases.

The Goods and Services Tax (GST) is a comprehensive indirect tax system that was introduced in India in 2017. The GSTN is the technology backbone of the GST system and is responsible for storing and processing all GST-related data.

The amendment to the PMLA to allow the ED to share information with GSTN is a significant development in the fight against GST evasion.

The GSTN has access to a vast amount of data on GST transactions, including information on the value of transactions, the parties involved in transactions, and the mode of payment. This data can be used by the ED to track down and investigate GST evaders.

The amendment to the PMLA is also a positive development for the GST system as a whole. The ability of the ED to share information with GSTN will help to ensure that GST evaders are brought to justice and that the government is able to collect the correct amount of tax.

The amendment is likely to have a deterrent effect on GST evaders. Knowing that the ED has access to GSTN data may make GST evaders more likely to comply with the law.

The amendment will also help the ED to investigate and prosecute GST evasion cases more effectively. The ED will now have access to a wider range of data, which will make it easier to track down and identify GST evaders.

The amendment is also likely to increase the amount of revenue that the government collects from GST. The ED will be able to identify and recover GST that has been evaded, which will benefit the government's finances.

Overall, the amendment to the PMLA to allow the ED to share information with GSTN is a positive development. The amendment will help to combat GST evasion, improve the GST system, and increase the amount of revenue that the government collects from GST.