Traders unhappy over bringing GST in PMLA ambit: Ajit Pawar

The central government's decision to bring GST cases under PMLA has led to concerns among traders and officials. The finance minister of Maharashtra, Ajit Pawar, has raised the issue with Prime Minister Narendra Modi and Home Minister Amit Shah. There are worries about the implications for the 14 million GST payers in the country. Additionally, there is opposition to including the sale of petrol and diesel under GST, as it would negatively impact state income. The state has also yet to receive its GST compensation from the central government.

Mumbai: The central government’s decision to bring Goods and Service Tax (GST) cases under the gamut of Prevention of Money Laundering Act (PMLA) has led to a furore among traders and government officials, said Ajit Pawar, who recently took over as the finance minister of the state.

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Pawar, who is also the deputy chief minister, said that concerns over the matter have been raised with the central government.

“It is true that there is fear among the traders and the GST payers over the amendment,” said Pawar.

“I have spoken to prime minister Narendra Modi and Union home minister Amit Shah during our meeting two days back. Shah has assured me to consider it very positively. I will raise the issue in the next GST council meeting,” said Pawar.

Pawar said that there are 14 million GST payers in the country, and they are worried about the repercussions of the amendment.

Pawar said that the officials of both the state and central government services are skeptical about the amendment. As per the notification from the central government, the officials will be held accountable for any violation of the GST and action can be taken against them.

Prithviraj Chavan, Congress MLA, said in the assembly that there was unrest among the traders over the amendment.

“The government can now use the Enforcement Directorare (ED) to take action against traders and this is a serious matter. There is unrest among the traders over this decision,” said Chavan.

Pawar also said that the state government will oppose any proposal to include sale of petrol and diesel under the GST.

“There is no such decision taken by the central government, but it would be against the interest of the state if it does.

The state government will lose its major source of income and it will affect the exchequer badly. We have already opposed any such move and other states are on the same page.

“We are also tapping into more sources and mobilisation of resources to increase the income. A few bitter decisions will have to be taken,” he said.

The question was raised by Rohit Pawar, NCP MLA, who asked Pawar if there was any proposal to include sale of petrol and diesel under the GST.

Pawar said that the Centre is yet to give the state its GST compensation of ₹11,113 crore. He said that ₹5,992 crore from FY2021-22 and ₹5,191 crore from 2022-23 are yet to be paid to Maharashtra by the central government.