The government has brought the Goods and Services Tax Network (GSTN) under the Prevention of Money Laundering Act (PMLA), 2002. This means that the GSTN will now be required to comply with the provisions of the PMLA, including reporting suspicious transactions to the Enforcement Directorate (ED).
The inclusion of GSTN under the PMLA will facilitate sharing of information or material in possession of the Enforcement Directorate (ED) with GSTN. The government issued a notification regarding the same on July 7.
The GSTN is a centralized IT infrastructure that facilitates the registration of businesses, the filing of GST returns, and the processing of payments. It is a critical part of the GST system, and it is used by millions of businesses across India.
The move to bring the GSTN under the PMLA is a significant step in the fight against money laundering in India. The GSTN will now be able to share information with the ED, which will help to identify and investigate suspicious transactions. This will help to ensure that the GST system is not used to launder money.
The PMLA is a stringent law that was enacted in 2002 to prevent money laundering. The law requires financial institutions and other businesses to report suspicious transactions to the ED. The ED is a law enforcement agency that is responsible for investigating money laundering cases.
The move to bring the GSTN under the PMLA is a positive step, as it will help to strengthen the fight against money laundering in India. The GSTN is a critical part of the Indian economy, and it is important to ensure that it is not used to launder money.
Overall, the move to bring the GSTN under the PMLA is a positive step that will help to strengthen the fight against money laundering in India.
