Delhi Chief Minister Arvind Kejriwal
| Photo Credit: FILE PHOTO
Chief Minister Arvind Kejriwal on Tuesday alleged that with the Goods and Services Tax Network (GSTN) now under the ambit of the Enforcement Directorate (ED), the agency may even arrest those traders who pay the indirect tax.
On July 7, the Finance Ministry decided to amend the Prevention of Money Laundering Act (PMLA) to include GSTN among the entities that will have to share information with the ED. At Tuesday’s GST Council meeting, Delhi Finance Minister Atishi and her Punjab counterpart Harpal Singh Cheema — both from Aam Aadmi Party-governed States — opposed the decision.
“The Central government should immediately take the decision back. This means if a businessman does not pay GST, the ED will directly arrest him and bail will not be given. We strongly oppose this and are with the traders of the country,” the CM said.
He added that a large number of traders do not pay GST, some out of compulsion and others intentionally, because the GST system is so complex that even those who are paying the full tax on time can be penalised. Mr. Kejriwal said that even small businessmen will also come under the ED’s grip and it will be dangerous for the economy.
After the GST Council meeting, Ms. Atishi said the BJP-led Centre’s move directly targets and harms traders, and is intended at destroying their businesses.
“Till now, the Centre misused the ED to threaten Opposition parties. With its new order, the Central government will harass the traders, especially in the Opposition-ruled States. For the betterment of traders, we will oppose this order which gives unlimited power to the ED,” she added.