Sunday, March 3, 2024

Government Includes GST under PMLA to Combat Black Money and Ensure Transparency

The government has taken a big decision regarding Goods and Service Tax. Now GST network has been brought under PMLA to curb black money. Under this, GST crimes like taking fake input tax credit and fake invoices etc. will be included in the Money Laundering Act.

The government has set up a robust IT network named GSTN to meet the needs of GST. GSTN provides a shared IT infrastructure and service to the Central and State Governments, tax payers and other stakeholders for GST work.

What is involved in the functioning of GSTN

Some of the functions involved in the functioning of GSTN include providing the service of registration to the consumer, forwarding returns to the central and state authorities, computing and settling IGST, tallying tax payment details with the banking network, providing tax payer return information, etc. But this includes providing MIS reports to the Central and State Governments, providing analysis of taxpayer profiles and arranging for matching, reversal and reclaiming of input tax credits. The target date for implementation of GST is July 1, 2017.

GSTN will also provide standard software to small traders to maintain their accounts. This can be directly uploaded on the GSTN website as their monthly return. This will make it easier for small traders to comply with GST rules.

What is GST?

The tax that has to be paid for the purchase of goods or the use of services. Rs has to be paid. By removing many types of taxes like excise duty, VAT, entry tax, service tax etc. existing before July 2017, now only one tax GST has been implemented. From 1 July 2017, it has been implemented in all the states and union territories of India.

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