GST Being Linked With ED, Tax Paying Traders Could Be Arrested, Says Arvind Kejriwal

To permit ED to share information with the GST network, the government changed the money-laundering law’s provisions.

Written by Shivanshi Srivastava July 12, 2023

Arvind Kejriwal, the Chief Minister of Delhi

Arvind Kejriwal, the chief minister of Delhi, claimed on Tuesday that since the Enforcement Directorate (ED) is being linked with the Goods and Services Tax (GST), even traders paying tax can be put behind the bars by the agency.

Kejriwal believed that attendees of the GST Council meeting on Tuesday would be against this development.

To permit ED to share information with the GST network, the government changed the money-laundering law’s provisions. The action would aid in the recovery of the uncollected GST due to money laundering.

Arvind Kejriwal tweeted, “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.”

He further mentioned, “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 GSTN manages the system’s technological foundation and serves as the central repository for all data pertaining to the GST, including returns, tax filings, and other compliances.

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