GST AND MONEY LAUNDERING
Section 66 of the Prevention of Money Laundering Act, 2002 enables the Enforcement Directorate [ED] to share the information with other law enforcing agencies relating to imposition of any tax, duty or cess or to dealings in foreign exchange, or prevention of illicit traffic in the narcotic drugs and psychotropic substances, if the ED has to reasons to believe that the provisions of the relevant law is contravened. 25 such agencies were already specified vide notification GSR 382(E) dated 27-6-2006 for sharing of information. Now, the Ministry of Finance, Department of Revenue vide Notification F.No. P.12011/2/2009-ES Cell-DOR dated July 07, 2023 has made an amendment to the above notification by including the Goods and Services Tax Network (“GSTN”). The inclusion of GSTN under the PML Act will now facilitate sharing of information or material in possession of the Enforcement Directorate (“ED”) with GSTN, if they have reasons to believe that the provisions of the GST have been contravened.