CAIT termed fear created among traders by bringing GST under ED as baseless. Loktej Business News

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New Delhi, 13 July (Hindustan Times). The Confederation of All India Traders (CAIT) has termed as baseless and illogical the apprehensions that the notification empowering the Enforcement Directorate (ED) to create panic among traders across the country to share data from GSTN.

Kat said in a statement released on Thursday that such reports that he will now have to face another government department ED, ED can investigate him anytime, such apprehensions are baseless and illogical. Kat said that a perusal of the notification shows that no unilateral coercive action can be taken by the ED against the traders.

CAT’s National General Secretary Praveen Khandelwal said that it is clear from a careful and comprehensive study of the notification issued on July 7 that the apprehensions regarding the inclusion of GST in the purview of ED are baseless. Khandelwal said that as per the notification, it is the Financial Intelligence Unit, which is associated with the ED like various other agencies and government departments.

He said that FIU plays a vital role in receiving, meticulously processing, meticulously analyzing and effectively disseminating information relating to potentially illegal financial transactions. As a result, traders may face questioning or investigation by the ED, if they are found guilty after the FIU’s unwavering investigation. The business leader said that if anyone is found guilty under the Financial Intelligence Unit (FIU) probe, the Enforcement Directorate will be actively involved and take appropriate action.

Khandelwal said that legal disputes like taxability in GST, exemption, classification, assessment, eligibility for ITC, eligibility for refund etc. cannot be covered under PMLA, including issue of fake invoices to claim ITC. Activities like taking recourse, issue of bogus invoices with intent to evade tax, acquisition of properties thereunder are also included.

He said that Section-66 empowers the ED to pass on any information received to any tax officer or such other officer as may be notified. Thus, being the taxing authority, the GST authorities are already entitled to seek any information from the ED. Now, through the latest notification dated July 7, GSTN has also been included as another authority, which entitles them to share any information with the ED.

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