ED Being Linked With GST Could Lead To Traders Arrest Without Bail: Delhi CM Arvind Kejriwal

The Centre has amended the provisions of the PML Act to allow the ED to share information with the GST network. The move aims to help in the recovery of the GST evaded through money laundering

Delhi Chief Minister Arvind Kejriwal on Tuesday said that the Goods and Services Tax (GST) being linked with the Enforcement Directorate (ED) could lead to the arrest of traders who are compliant with tax payments. Kejriwal hoped that people would voice their opposition to this matter during the 50th GST Council meeting on Tuesday. The Centre has amended the provisions of the money-laundering act to allow the ED to share information with the GST network.

The move aims to help in the recovery of the GST evaded through money laundering.

"A large proportion of traders do not pay GST, some out of compulsion, some intentionally. A few days ago, the Centre also brought the GST within the purview of the ED. It means that now, if a businessman does not pay the GST, the ED will arrest him directly and bail will not be granted," Kejriwal alleged in a tweet in Hindi.

"The GST system is so complex that even those paying GST can be put behind bars under some provisions. This means that any businessman can be sent to jail whenever the Centre wants. This is extremely dangerous," the Delhi chief minister alleged.

The national convenor of the Aam Aadmi Party (AAP), Arvind Kejriwal, also emphasised that the impact of linking the ED with the GST would extend even to small traders. He asserted that this development poses an "extremely dangerous" threat to the country's economy.

As per the recent amendment to the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the Goods and Services Tax Network (GSTN) has been added to the list of entities that the Enforcement Directorate (ED) will collaborate with to share information. GSTN, responsible for managing the technological infrastructure of the indirect tax system, serves as a centralised repository for all GST-related data, encompassing tax filing, return submissions, and other compliance-related matters.

According to ABP sources, an argument reportedly took place between Delhi Finance Minister Atishi Marlena and Union Finance Minister Nirmala Sitharaman during the GST council meeting being held in Vigyan Bhavan on Tuesday. A similar debate occurred between Punjab Finance Minister Haras and Sitharaman.

Earlier, Marlena told reporters before that she would raise the issue of the ED being linked with the GST during the council meeting. 

(with inputs from Deepak Rawat)