The Central Government issued a notification on Saturday announcing the inclusion of the Goods & Services Tax Network (GSTN) within the framework of the Prevention of Money Laundering Act (PMLA).
Consequently, the information stored on the GSTN can now be shared in accordance with the provisions of the PMLA Act.
Central Govt Includes GST Within PMLA
This development enables stringent action to be taken against individuals involved in tax evasion and the manipulation of documents, thus strengthening efforts to combat such illicit activities.
The government’s decision allows for the retrieval of information related to the GST network under the purview of the PMLA Act. This inclusion ensures that offenses under the GST, such as fraudulent claims for input tax credit and the use of counterfeit invoices, will now fall within the ambit of the PMLA Act.
The primary objective of the Prevention of Money Laundering Act is to prevent the process of money laundering and provide the legal framework for the confiscation of assets derived from or involved in money laundering. It also addresses matters connected to or incidental to money laundering activities.
Government Establishes Robust IT network “GSTN”
In order to facilitate the implementation of the GST, the government has established a robust IT network known as the GSTN. The GSTN serves as a shared IT infrastructure and service provider for the Central and State Governments, taxpayers, and other stakeholders involved in the GST implementation process.
As per the official statement, the functions of the GSTN encompass various aspects, including facilitating registration, forwarding returns to the relevant authorities, computing and settling integrated goods and services tax (IGST), matching tax payment details with the banking network, generating management information system (MIS) reports for the Central and State Governments based on taxpayer return information, analyzing taxpayers’ profiles, and operating the matching engine for reconciling, reversing, and reclaiming input tax credits. The GST was initially slated for implementation on July 1st, 2017.
Additionally, the GSTN will offer standard software to assist small traders in maintaining their accounts, allowing them to directly upload their monthly returns on the GSTN website. This measure aims to simplify compliance procedures for small traders, facilitating their participation in the GST system.
