Punjab finance, planning, excise and taxtaion minister Harpal Singh Cheema on Wednesday said the Union finance ministry should immediately rollback the amendments that brought the Goods and Services Tax Network (GSTN) under the Prevention of Money Laundering Act (PMLA) as these amendments enabled sharing of GST data with the enforcement directorate (ED).
In a statement, Cheema said the step may lead to dire consequences and a state of ‘tax terrorism’ for honest taxpaying traders.
The finance minister said the state government had also registered a strong opposition on the issue of sharing GST data with the ED during the GST council meeting held in New Delhi on Tuesday.
He said Punjab Government along with other like-minded state governments would pressurise the Union finance ministry for the rollback of this anti-traders move.
Cheema said the ED may misuse the ‘new power’ in arm-twisting any of the businessmen across the nation. “Even a businessman who is paying GST honestly will always be worried that his minor mistake may lead to the exploitation at the hands of ED, and he will not be granted bail if arrested,” said Cheema, while adding that this would adversely affect the economic growth of the country.
He said the move would also hamper the federal structure of the nation as this would increase the interference of the Union government in the states. He said Punjab and many other states have already setup their own tax intelligence system to keep a vigil over tax evaders, and are competent enough to monitor the related activities. He said the Union government should support the states in further strengthening of these systems rather than opting for measures that may lead to the harassment of traders and businessmen, who are the strong pillars of the Indian economy.
{{/usCountry}}He said the move would also hamper the federal structure of the nation as this would increase the interference of the Union government in the states. He said Punjab and many other states have already setup their own tax intelligence system to keep a vigil over tax evaders, and are competent enough to monitor the related activities. He said the Union government should support the states in further strengthening of these systems rather than opting for measures that may lead to the harassment of traders and businessmen, who are the strong pillars of the Indian economy.
{{/usCountry}}The Centre had in exercise of a power conferred by Section 66 of the Prevention of Money-laundering Act, issued a notification dated July 7, 2023, whereby Goods and Services Tax Network has been brought within the ambit of the said Act.