The GST Council had its 50th meeting in Delhi on Tuesday. The meeting was led by Finance Minister Nirmala Sitharaman. Opposition parties objected to the proposal of bringing GST under the PMLA Act. Arvind Kejriwal, the Chief Minister of Delhi, and Atishi, the Education Minister of Delhi, both expressed their opposition to the Goods and Services Tax Network (GSTN) being authorized to share information with the Enforcement Directorate (ED). Kejriwal called it dangerous for the economy and demanded its withdrawal.
Kejriwal tweeted earlier in the day about traders not paying GST and the recent introduction of GST in ED. He said that if a businessman doesn’t pay GST, the ED can arrest them without bail. He criticized the complexity of the GST system and its potential to imprison businessmen even if they pay the full GST rate. He believed that this power could be used to control and harm small businesses, which would be detrimental to the economy.
Atishi, along with other finance ministers, expressed concern over including GST under the PMLA. A notification was issued on July 7th, placing the entire GST system within the Prevention of Money Laundering Act. This means that people who file GST can now be punished by the ED under the PMLA. Atishi highlighted previous instances of the ED harassing and arresting individuals and requested a meeting to discuss the matter.
On July 7th, the government made a significant decision to include the GSTN into the PMLA. A notification was issued, allowing the ED to directly intervene in GST-related cases. The ED can now take immediate action against those involved in GST evasion. The government notice stated that the ED would have access to comprehensive data from the GST network. This notification pertains to information exchange between ED and GSTN under PMLA Section 66(1)(iii).
