Several opposition-ruled states expressed concern over the Centre’s decision to allow GST Network (GSTN) to share information with the Enforcement Directorate (ED), Delhi Finance Minister Atishi told reporters after the GST council meeting. Punjab’s Finance Minister Harpal Singh Cheema criticised the decision, labeling it as “tax terrorism” and a source of fear for small businesses.
In a latest notification, the finance ministry introduced an amendment to the provisions of the Prevention of Money Laundering Act (PMLA), 2002. Now GSTN, responsible for managing the technological infrastructure of the Goods and Services Tax, has been included in the list of entities authorised to share information with the ED.
Aam-Aadmi Party ruled Delhi and Punjab raised concerns over the notification and demanded a discussion during the 50th GST Council meeting. “A lot of finance ministers raised the issue… Delhi, Punjab, West Bengal, Tamil Nadu, Himachal Pradesh, Karnataka, Chhattisgarh, Telangana, and Rajasthan have voiced their concern and said that it should be discussed in GST Council,” Delhi finance minister Atishi told reporters.
After the opposition, will the central government now attack ED on crores of businessmen of the country?
That’s why Union Finance Minister Nirmala Sitharaman is not even ready to discuss her decision to bring GST under PMLA in today’s meeting.
Now the first part of GST Council meeting is over. pic.twitter.com/xSIPSxLtf3
— Atishi (@AtishiAAP) July 11, 2023
Punjab FM Cheema said several states have demanded a discussion.
“The notification would give power to ED to catch any businessman if he/she does not pay GST. With such decision, tax terrorism will increase in the country and it is dangerous for small businesses and common man,” he said.
Also Read: ED Being Linked With GST Could Lead To Traders Arrest Without Bail: Delhi CM Arvind Kejriwal
Atishi said that since GSTN has been brought under PMLA, it would mean that irrespective of whether you are a small or big business, if you are registered under GST, you can be prosecuted by ED for offences like delay in filing of return.
“We have all seen how ED is being misused to harass and arrest people. Now crores of GST-registered businesses and traders will have to save themselves from PMLA prosecution. We are against this notification,” Atishi said, adding if anyone is involved in GST evasion, then he/she should be tied under GST laws.
“If a country wants to increase ‘ease of doing buinsess’ and boost economic growth, we should not scare businesses with ED. A lot of FMs raised the issue. Such a big decision should not have been taken without consulting the GST Council,” Atishi said. Earlier, Delhi CM Arvind Kejriwal and Congresses Panwa Kheda also criticised the move.