Dear Professional Colleagues,

Section 66 of PMLA Act,2002.

“(1) The Director or any other authority specified by him by a general or special order in this behalf may furnish or cause to be furnished to—

(i) any officer, authority or body performing any functions under any law relating to imposition of any tax, duty or cess or to dealings in foreign exchange, or prevention of illicit traffic in the narcotic drugs and psychotropic substances under the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985); or

(ii) such other officer, authority or body performing functions under any other law as the Central Government may, if in its opinion it is necessary so to do in the public interest, specify, by notification in the Official Gazette, in this behalf, any information received or obtained by such Director or any other authority, specified by him in the performance of their functions under this Act, as may, in the opinion of the Director or the other authority, so specified by him, be necessary for the purpose of the officer, authority or body specified in clause (i) or clause (ii) to perform his or its functions under that law.

(2) If the Director or other authority specified under sub-section (1) is of the opinion, on the basis of information or material in his possession, that the provisions of any other law for the time being in force are contravened, then the Director or such other authority shall share the information with the concerned agency for necessary action.”

Some of the agencies notified under section 66(1)(ii) as follows:

• Directorate of Enforcement under the Ministry of Finance, Department of Revenue
• Cabinet Secretariat (Research and Analysis Wing)
• Ministry of Home Affairs or National Security Council Secretariat or Intelligence Bureau
• Economic Offences Wing of Central Bureau of Investigation
• Chief Secretaries of the State Governments
• Reserve Bank of India
• Department of Company Affairs, Government of India
• Securities and Exchange Board of India
• Insurance Regulatory and Development Authority of India
• National Investigation Agency
• Serious Fraud Investigation Office;
• Central Economic Intelligence Bureau
• State Police Department
• Director General of Foreign Trade
• The National Intelligence Grid
• Central Vigilance Commission
• Defence Intelligence Agency
• National Technical Research Organisation.
• Military Intelligence
• Goods and Services Tax Network(Latest addtion)

Misconception

There is a misapprehension going around in social media that GST offence has become a money laundering offence by virtue of this Notification dated 7July, 2023 issued under Section 66 of the PMLA Act, 2002.

Detailed analysis

The reality is that GSTN as an agency has been included in PMLA at par with some other high-ranking central agencies.

In simple words, Section 66(1)(ii) states that the specified PMLA officer may furnish any information available with it to such other notified agency(as above), as may be required to perform its functions under that law.

AMRG comments

The GSTN is sharing the data with the FIU and also sharing the data with other sister agencies like CBDT or for that matter, the enforcement wing, etc. through a memorandum of understanding. [Source: CNBCTV18 ]

Now the Notification issued on July 7, facilitates the enforcement directorate to share the information with the GSTN, tightening the investigation under GST.