Categories: Gst Compliance

GST offences covered under PMLA, ED to share info To GSTN

GST offences covered under PMLA. ED to share info with GSTN

Offences under the GST Act The PMLA has now been applied to the Goods and Services Tax Network (GSTN) by the government. Now, the PMLA allows for the sharing of GSTN data and information. Therefore, the PMLA will address GST violations such using fictitious invoices and input tax credits, among others. Regarding imprisonment and custody attachment, the PMLA includes very strict provisions. This will assist in reducing tax evasion across the nation.

In simple words,  money laundering is the intentional, direct or indirect handling of the proceeds of crime. Money laundering is commonly understood as the process of transforming black money, also known as Number Two money, into white money, also known as Number One money.

Professional & Experts clarified that bringing GSTN under Prevention of Money Laundering Act, 2002 does not mean Goods and services Tax offences come under the money laundering or Prevention of Money Laundering Act, 2002 Act, this stressing that the notification only facilitates sharing of information between the investigating agencies & GSTN,

GST Act violations will be booked as Prevention of Money Laundering Act offence

The decision was made to subject GSTN to money laundering regulations due to an increase in cases of GST fraud and fictitious registrations. The money laundering legislation will provide tax officials more power to locate the original beneficiary in fraud instances, say experts.

The use of fictitious tax credits and false registrations has been looked into by the GST authorities.

Field tax authorities identified approximately 69,600 suspicious GST identifying numbers (GSTINs) for physical verification during a two-month campaign that started on May 16.

Over 17,000 (almost 25%), or more than 59,000 GSTINs, have been certified to be non-exempt out of those.

Offences Under the Prevention of Money Laundering Act (PMLA)

A person performs money laundering when he/she has directly or indirectly attempted to indulge, knowingly is a party, knowingly assisted or is genuinely involved in one or more of the following processes or activities connected with proceeds of crime: Possession. Acquisition. Concealment,

Part A of the Schedule to the Prevention of Money Laundering Act includes serious offences under the IPC such murder, culpable homicide, voluntary infliction of harm to extort property or a valuable security, kidnapping for ransom, extortion, forgery, and counterfeiting money orders or bank notes.

Part B of the Schedule to the Prevention of Money Laundering Act lists false declarations, fake papers, and other offences as defined in section 132 of the Customs Act.

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