Winning Bizness Desk

Mumbai. The Central Government has taken a major decision to curb the GST Scam. The Modi-led government has taken a very important decision to introduce the Goods and Services Tax (GST) under the Prevention of Financial Misappropriation Act (PMLA). Due to this, now the Enforcement Directorate i.e. ED can take action against the GST evader. The government has issued an important notification in this regard. Due to this, ED will now prosecute GST evaders. ED can directly intervene in GST evasion cases. The government's new decision will empower the ED to take direct action against individuals or companies who evade GST. As per the notification issued by the government, all information related to the GST network will be given to the Directorate of Enforcement. As per this notification, under Section 66(1)(iii) of Prevention of Financial Misappropriation Act (PMLA) regarding exchange of information between ED and GSTN.

Why was the PMLA Act brought?

The Prevention of Financial Misappropriation Act (PMLA) was introduced to curb terror funding and drug trafficking. Sensitive information under the GST Network (GSTN) can be helpful in investigations. It is said that the ED can get more help in the investigation. According to the notification, now the exchange of information or other things between both GSTN and ED will be facilitated.

Know, what is PMLA?

Under the PMLA, the government has the right to confiscate ill-gotten gains. This Act was passed in 2002. Meanwhile, on 1 July 2005, the Prevention of Money Laundering Act, namely the Prevention of Money Laundering Act (PMLA) was enacted. It has been six years since the implementation of the GST tax system. During this period, the number of taxpayers has doubled compared to 2017 and now stands at around 1.4 crore taxpayers. So, the average monthly revenue has also increased from around Rs 90 thousand crore to Rs 1.69 lakh crore in 2017-18.