Punjab Finance, Planning, Excise and Taxtaion Minister Harpal Singh Cheema on Wednesday mentioned that the Union Finance Ministry ought to instantly rollback the amendments that introduced the Goods and Services Tax Network (GSTN) beneath the Prevention of Money Laundering Act (PMLA) as these amendments enabled sharing of GST information with the Enforcement Directorate (ED). He mentioned that this step could result in dire penalties and a state of ‘Tax Terrorism’ for the trustworthy taxpaying merchants.
In a press communiqué issued right here, the Finance Minister Harpal Singh Cheema mentioned that Punjab authorities has additionally registered a robust opposition on the difficulty of sharing GST information with ED through the GST Council assembly held at New Delhi on Tuesday. He mentioned that Punjab Government together with different like-minded state governments would pressurise the Union Finance Ministry for the rollback of this anti-traders transfer.
Cheema mentioned that ED could misuse the ‘new power’ in arm-twisting any of the businessmen throughout 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”, mentioned Cheema whereas including that this state of ‘Tax Terrorism’ would adversely have an effect on the financial progress of the nation.
Describing this transfer as one other nail within the coffin, Punjab Finance Minister mentioned that this transfer would additionally additional hamper the federal construction of the nation as this might additional improve the interference of the union authorities within the states. He mentioned that Punjab and plenty of different states have already setup their very own tax intelligence system to maintain a vigil over the tax evaders, and are competent sufficient to watch the associated actions. He mentioned that Union Government ought to help the states in additional strengthening of those programs quite than choosing measures that will result in the harassment of merchants and businessmen, who’re the robust pillars of the Indian financial system.
It is value mentioning right here that the Government of India has in train of energy conferred by part 66 of the Prevention of Money-laundering Act, issued a notification dated seventh July, 2023 whereby Goods and Services Tax Network has been introduced throughout the ambit of the mentioned Act.