Govt. Includes ‘Goods and Services Tax Network’ under PMLA to Enable Sharing of Data with ED
- Blog|News|FEMA & Banking|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 11 July, 2023
Latest from Taxmann
Notification No. G.S.R. 491(E)., Dated 07.07.2023
Earlier, the Ministry of Finance vide Notification No. G.S.R. 381(E), Dated 27.06.2006, specified a list of agencies that were required to share information with the Enforcement Directorate (ED), the Financial Intelligence Unit (FIU) and other investigative agencies under the Prevention of Money-laundering Act, 2002 (PMLA).
Now, the Central Government has expanded the scope of PMLA by including the Goods and Services Tax Network (GSTN) in the list of agencies. GSTN is an information technology system responsible for managing the GST portal.
These changes have been made w.r.t section 66 of PMLA, which mandates the disclosure of information by the person as specified by the director or any other specified authority.
Prior to this inclusion, there were already 25 agencies, including the Competition Commission of India, Reserve Bank of India, SEBI, Insurance Regulatory and Development Authority of India (IRDA), Serious Fraud Investigation Office (SFIO), and Director General of Foreign Trade (DGFT). The inclusion of GSTN has been made as the 26th entry in the list of agencies.
At present, the GST Act, under Section 158 gives the power to disclose the information it has with regard to any prosecution under the IPC and even under any other law in force for the time being. However, there was no corresponding power under the PMLA to disclose information to the GSTN unless notified under Section 66(1)(ii) of the PMLA. With the current notification, GSTN has now been included in the list.
The inclusion of GSTN in the list facilitates the effective sharing of sensitive data, aiding the Enforcement Directorate in investigating and recovering evaded revenue through money laundering. This decision is expected to have a significant impact on enhancing the effectiveness of prosecutions and investigations related to GST violations.
The notification will now facilitate the sharing of information or material in possession between the ED and GSTN if ED has reasons to believe that the provisions of the GST have been contravened.
Click Here To Read The Full Notification
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
