• 11 Aug 2023 05:39 PM
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GSTN and PMLA: Framework, Discussions and Impact

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GSTN, established with the purpose of offering shared IT infrastructure and services, serves as a platform for the implementation of the Goods & Services Tax (GST). PMLA, on the other hand, has the objective of preventing money laundering and confiscating property linked to such activities.

GSTN, established with the purpose of offering shared IT infrastructure and services, serves as a platform for the implementation of the Goods & Services Tax (GST). PMLA, on the other hand, has the objective of preventing money laundering and confiscating property linked to such activities.

While there is no active proposal to bring GSTN under the direct purview of PMLA, a recent notification issued under Section 66 of PMLA has enabled the Director of the Financial Intelligence Unit-India to share various reports related to cash transactions and suspicious activities with GSTN. These reports would be shared with GST authorities if deemed relevant for addressing GST evasion concerns.

Regarding concerns raised during the 50th Meeting and opposition from certain states, the response does not indicate any decision to bring GSTN under PMLA. However, discussions surrounding this topic highlight the importance of transparency and cooperation in addressing potential tax evasion.

Conclusion: The relationship between GSTN and PMLA showcases the government's commitment to preventing money laundering and ensuring compliance within the context of GST implementation. While the response does not indicate a direct link between the two, the issuance of notifications indicates efforts to share relevant financial information to curb potential evasion. The evolving dynamics of this connection emphasize the need for ongoing dialogues to strike a balance between compliance, transparency, and business interests.