The Prevention of Money Laundering Act (PMLA) will now apply to the Goods and Services Tax Network (GSTN), according to a notification the Centre released on Saturday. As a result, the GSTN is one of the organisations required under the PMLA Act to exchange information with the Enforcement Directorate (ED) and the Financial Intelligence Unit (FIU). These modifications have been made in accordance with Section 66 of the PMLA, which governs information dissemination. 

According to this announcement, if the FIU or the ED discover that a GST assessee is engaging in questionable foreign exchange transactions, they will also disclose such information with the GSTN. The Prevention of Money Laundering Act would also apply to GST violations including claiming false input tax credits and fabricating invoices, among other things.

The GST site is controlled by an information technology system called the Goods and Services Tax Network (GSTN). The government uses the GSTN to track domestic financial transactions, with the help of private parties.

In order to implement GST, the portal aims to provide common IT infrastructure and services to the federal and state governments, taxpayers, and other stakeholders. The GSTN performs a variety of tasks, including making registration easier, sending returns to the appropriate Central and State agencies, computing and settling IGST, connecting tax payment information with the banking system, conducting analyses of taxpayer profiles, and matching invoices. 

The Competition Commission of India, Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority of India, Serious Fraud Investigation Office, and Director General of Foreign Trade are among the organisations that must exchange information with the ED and the FIU. This list is periodically updated.

To combat drug trafficking and terrorism funding, the PMLA was passed. Property used in money-laundering or generated from it may be seized under the PMLA Act.

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