Traders need not fear Govt’s move to bring GST under ED lens: CAIT

 

 

Expressing its views on the recent notification of the Government to empower Enforcement Directorate (ED) to obtain data from GSTN, the Confederation of All India Traders (CAIT) said the traders should not fear due to it. The decision has created a panic and fear among the trading community. CAIT has termed such fears as unfounded and illogical as reading of the notification does not bring any coercive action of ED against the traders. CAIT National President B C Bhartia and Secretary General Praveen Khandelwal issued a joint statement saying that it is evident that the apprehension regarding the inclusion of GST under the purview of ED is unfounded.

 

Bhartia and Khandelwal said that as per the notification, it is the Financial Intelligence Unit (FIU) that is engaged with the ED like various other agencies and Government departments. Bhartia and Khandelwal opined that in Goods and sServices Tax (GST), while legal disputes may not be covered under PMLA, the activities of resorting to issuance of fake invoices or claim of ITC on the basis of fake invoices, with an intent to evade taxes, leading to acquisition of properties, may be covered, depending upon the facts and circumstances of each case. Now, through the latest notification dated July 7, GSTN (M/s. GST Network Ltd.) are also included as another authority, making them entitled for share of any information from the ED. So, the new notification practically may not have any relevance for the taxpayers under GST.