Centre allays concerns of states over inclusion of GST network under PMLA

economictimes.indiatimes.com:

Goods and Services Tax Network (GSTN) under Prevention of Money Laundering Act, saying that the body will share information with Financial Intelligence Unit and not with the Enforcement Directorate and move was in line with the requirement under the Financial Action Task Force (FATF). India's FATF review is due in November.

«They (members) have doubts that GSTN will start sharing information about the private business to other law enforcement agencies including ED (enforcement directorate). It was clarified that ED is not getting any information, but the director of FIU will get (the information).

I think all of them (state ministers) were quite satisfied with the explanation,» revenue secretary Sanjay Malhotra told reporters. He added that the inclusion of GSTN in PMLA will empower tax authorities to fight cases wherever they feel there is any chance of tax evasion or money laundering.

The finance ministry, through a notification, brought in an amendment to the provisions of PMLA, 2002, as per which GSTN, has been included in the list of entities required to share information with FIU. The list of entities that need to share information include the Competition Commission of India, RBI, Sebi, Insurance Regulatory and Development Authority of India, Serious Fraud Investigation Office and Director General of Foreign Trade on it.