The government has brought the Goods and Services Tax Network (GSTN) under the Prevention of Money Laundering Act (PMLA).
The government has brought the Goods and Services Tax Network (GSTN) under the Prevention of Money Laundering Act (PMLA).
PremiumThe Central Government issued a notification on Saturday to bring the Goods & Services Tax Network (GSTN) under the purview of the Prevention of Money Laundering Act (PMLA). Information stored on GSTN can be now shared under PMLA Act. Due to this, it will be possible to take strict action against those involved in tax evasion and manipulation of documents. (Central government brings GST in PMLA Act).
With this decision of the government, information of the GST network can now be sought under the PMLA Act. Due to this, crimes under GST like fake input tax credit, fake invoices etc. will be included in the PMLA Act.
The Prevention of Money Laundering Act is to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto.
The government putting in place a robust IT network called the GSTN has been set up to cater to the needs of GST. The GSTN provide a shared IT infrastructure and services to Central and State Governments, taxpayers and other stakeholders for implementation of GST. The functions of the GSTN would, inter alia, include: (i) facilitating registration; (ii) forwarding the returns to Central and State authorities; (iii) computation and settlement of IGST; (iv) matching of tax payment details with banking network; (v) providing various MIS reports to the Central and the State Governments based on the taxpayer return information; (vi) providing analysis of taxpayers' profile; and (vii) running the matching engine for matching, reversal and reclaim of input tax credit. The target date for introduction of GST is 1st July, 2017.
The GSTN will also make available standard software for small traders to keep their accounts in that, so that straight away it can be uploaded as their monthly returns on GSTN website. This will make compliance easier for small traders