Quick Summary
The Central Board of Indirect Taxes and Customs Chairman, Vivek Johri, clarified that there is no reverse flow of information that will happen after bringing the Goods and Service Tax Network (GSTN) under the ambit of the Prevention of Money Laundering Act, 2002 (PMLA). The clarification was made to address the apprehensions raised by some states regarding the interference of investigating agencies in businesses. The amendment to the PMLA includes GSTN in the list of entities with which the E
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FAQ :
No, the Chairman of CBIC has clarified that there is no provision for a reverse flow of information, meaning your business information from the GST base will not be shared with any other law enforcement agency.
This move is in response to the rising instances of GST fraud and fake registrations. Bringing GSTN under the PMLA aims to strengthen efforts in detecting and preventing such fraudulent activities.
The intention is to enable the sharing of information from the Financial Intelligence Unit (FIU) with GSTN, which GSTN can then use for risk assessment purposes.
GSTN will receive information from the Financial Intelligence Unit (FIU) for risk assessment. There is no provision for GSTN to share business information with the Enforcement Directorate or other law enforcement agencies.
This move was not discussed in the GST Council before its implementation, which had raised concerns among some Opposition-ruled states.
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