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NEW DELHI: Days after the Centre allowed the Enforcement Directorate (ED) to share information with the GST Network (GSTN), several Opposition-ruled states criticised the move, while the Centre allayed fears.
Union finance minister Nirmala Sitharaman told reporters that Aam Aadmi Partyruled Delhi and Punjab wanted a discussion on the subject, which was done on Tuesday evening, with revenue secretary Sanjay Malhotra explaining the rationale. Delhi FM Atishi said states including West Bengal, Tamil Nadu, Karnataka and Chattisgarh were among those, who wanted the issue to be discussed.
Malhotra said notification for sharing the information with GSTN, the IT backbone for the indirect tax, was meant to comply with commitments made to Financial Action Task Force, the global antimoney laundering alliance. He said it was clarified that changes will empower tax authorities with more information. “I think all of them were quite satisfied with the explanation,” the top bureaucrat said.
“This information can be used by tax authorities. . . The GSTN is a recipient of information. There were doubts that GSTN will start sharing information about private businesses to other law enforcement agencies, like ED,” he said.
The Centre also told the states that the Financial Intelligence Unit will provide information to authorities that will help reduce the chances of tax evasion or money laundering.
The Opposition ruled states said the data will be used against small businesses. “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 earlier on Tuesday.
Agencies quoted Punjab FM Harpal Singh Cheema saying that the notification would give power to ED to catch any businessman if he/she does not pay GST and “with such decision, tax terrorism will increase in country and it is dangerous for small businesses and common man. ”
Union finance minister Nirmala Sitharaman told reporters that Aam Aadmi Partyruled Delhi and Punjab wanted a discussion on the subject, which was done on Tuesday evening, with revenue secretary Sanjay Malhotra explaining the rationale. Delhi FM Atishi said states including West Bengal, Tamil Nadu, Karnataka and Chattisgarh were among those, who wanted the issue to be discussed.
Malhotra said notification for sharing the information with GSTN, the IT backbone for the indirect tax, was meant to comply with commitments made to Financial Action Task Force, the global antimoney laundering alliance. He said it was clarified that changes will empower tax authorities with more information. “I think all of them were quite satisfied with the explanation,” the top bureaucrat said.
“This information can be used by tax authorities. . . The GSTN is a recipient of information. There were doubts that GSTN will start sharing information about private businesses to other law enforcement agencies, like ED,” he said.
The Centre also told the states that the Financial Intelligence Unit will provide information to authorities that will help reduce the chances of tax evasion or money laundering.
The Opposition ruled states said the data will be used against small businesses. “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 earlier on Tuesday.
Agencies quoted Punjab FM Harpal Singh Cheema saying that the notification would give power to ED to catch any businessman if he/she does not pay GST and “with such decision, tax terrorism will increase in country and it is dangerous for small businesses and common man. ”
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