Government’s Move to Bring GSTN Under PMLA Faces Opposition from AAP
The government has brought the Goods and Services Tax Network (GSTN) under the Prevention of Money Laundering Act (PMLA) in order to prevent tax evasion through fake billing. GSTN is the technology backbone of the indirect tax regime and stores all GST-related information, including returns, tax filings, and other compliances.
The government’s decision to bring GSTN under PMLA has been met with mixed reactions. Some experts have welcomed the move, saying that it will help to crack down on tax evasion. Others have expressed concerns that the move could be used to harass taxpayers. The Aam Aadmi Party (AAP) on Friday opposed the move to bring the GSTN under the ambit of the PMLA.
The Delhi CM Arvind Kejriwal has also expressed concern over the amendment to the PMLA. He has said that the government should immediately withdraw the decision.
“This means if a businessman does not pay GST, the ED will directly arrest him and bail will not be given,” Kejriwal said. “We strongly oppose this and are with the traders of the country.”
“The AAP strongly opposes the move to bring GSTN under PMLA. This is a clear attempt by the government to harass taxpayers. The GSTN is a non-profit organization that is responsible for collecting and processing GST data. It is not a government agency, and it should not be brought under the PMLA,” said AAP leader Atishi.
She also said that the PMLA is a very stringent law that is used to investigate money laundering cases. “Bringing GSTN under the PMLA would mean that the ED could arrest anyone who is registered under the GST, even if they have paid the tax correctly,” she said.
“This would have a chilling effect on trade and investment. It would also make it very difficult for businesses to comply with the GST law,” she added.
Impact on Businesses
The amendment to the PMLA is likely to have a significant impact on businesses. Businesses that are registered under the GST will now have to be more careful about their financial transactions. They will need to make sure that they are paying the correct amount of GST and that their financial records are accurate.
The amendment could also make it more difficult for businesses to get loans or other financial support. Banks and other financial institutions may be reluctant to lend money to businesses that are under investigation by the ED.
Impact on Economy
The amendment to the PMLA could also have a negative impact on the economy. Businesses may become more reluctant to invest or expand if they are worried about being arrested by the ED. This could lead to a slowdown in economic growth.
The amendment has also been criticized by some economists who say that it is a misuse of the PMLA. They say that the PMLA is designed to investigate money laundering cases, not tax evasion cases.
The amendment to the PMLA is new and hence, it is not clear how it will be implemented in practice. However, it is clear that the amendment has caused fear among traders and businesses. It remains to be seen how the amendment will impact the economy.
