Ease of Doing Business for MSMEs: The Confederation of All India Traders (CAIT), the pan-India traders’ representative body, has dismissed concerns regarding data sharing between GSTN and the Enforcement Directorate in its recent statement.
The general perception is that the traders might now have to face the security from Enforcement Directorate impacting their business operations.
According to CAIT National President B C Bhartia and Secretary General Praveen Khandelwal, the fears of traders facing security issues from the Enforcement Directorate are unfounded and illogical. They clarified that the Financial Intelligence Unit (FIU) engages with the ED, and traders may face questioning or investigation if found culpable under scrutiny by the FIU.
They said, “The FIU assumes a pivotal role in receiving, ….and effectively disseminating information related to potentially illicit financial transactions. Consequently, both prominent and modest traders may face questioning or investigation by the ED if they are deemed culpable following scrutiny by the unwavering gaze of the FIU.”
While legal disputes related to taxability, exemption, classification, valuation, eligibility for ITC, and eligibility for refunds may not fall under the Prevention of Money Laundering Act, activities such as issuing fake invoices or claiming ITC based on fake invoices to evade taxes and acquire properties may be covered. The ED will take action if someone is found guilty under the scrutiny of the Financial Intelligence Unit.
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According to the notification dated 7th July, GSTN data will now be available for the Enforcement Directorate from the GST officials under the ambit Prevention of Money Laundering Act, 2002 (PMLA).
