GST Network brought under Anti-Money Laundering law to plug tax evasion

Notified the exchange of information between ED and GSTN under the Prevention of Money Laundering Act, 2002 (PMLA) to help in such kind of investigations.

Aiming to plug tax evasion through fake billing, Centre has brought the GST Network (GSTN) under the purview of Prevention of Money Laundering Act (PMLA). This will give more power to the Enforcement Directorate (ED), the anti-money laundering agency, to act against tax evasion within GSTN. The government, through a gazette notification, notified the exchange of information between ED and GSTN under the Prevention of Money Laundering Act, 2002 (PMLA) to help in such kind of investigations.

 

The Ministry of Finance, Department of Revenue, has issued a significant notification, including the Goods and Services Tax Network (GSTN) under the provisions of the Prevention of Money-laundering Act, 2002 (PMLA, 2002). 

 

This inclusion allows the Enforcement Directorate (ED) to share relevant information or material with GSTN if they have reasons to believe that there has been a violation of the Goods and Services Tax (GST) provisions. 

 

The notification addresses the need for disclosure of information under the PMLA, which previously lacked a provision for disclosing information to GSTN. While the GST Act empowered GST authorities to disclose information under the GST framework for prosecution under various laws, including the Indian Penal Code (IPC), there was no specific provision for sharing information with GSTN under PMLA. With this latest notification, GSTN has been added to the list of entities authorized to receive information under PMLA.

MINISTRY OF FINANCE

(Department of Revenue)

NOTIFICATION

New Delhi, the 7th July, 2023

 

G.S.R. 491(E).—In exercise of the powers conferred by clause (ii) of sub-section (1) of section 66 of the Prevention of Money-laundering Act, 2002 (15 of 2003), the Central Government, being satisfied that it is necessary in the public interest to do so, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance, Department of Revenue, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 381(E), dated the 27th June, 2006, namely:-

 

In the said notification, after serial number (25) and the entry relating thereto, the following serial number and entry shall be inserted, namely:-

 

“(26) Goods and Services Tax Network.”.

 

[F. No. P.12011/2/2009-ES Cell-DOR]

SHASHANK MISRA, Director (Hqr.)

 

Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 381(E), dated the 27th June, 2006 and subsequently amended vide numbers G.S.R. 929(E), dated the 29th December 2009, G.S.R. 763(E), dated the 15th September, 2010, G.S.R. 957(E), dated the 7th December, 2010, G.S.R. 735(E), dated the 1st October, 2012, G.S.R. 30(E), dated the 17th January, 2014, G.S.R. 564(E), dated the 6th August, 2014, G.S.R. 970(E), dated the 15th December, 2015, G.S.R. 136(E), dated the 17th February, 2017, G.S.R. 437(E), dated the 8th May, 2018, G.S.R. 674(E), dated the 25th July, 2018, G.S.R. 24(E), dated the 11th January, 2019 and G.S.R. 152 (E) dated the 1st March, 2021.