Atishi said the move would also affect small traders
Delhi minister Atishi today said that the linking of Goods and Services Tax (GST) with the Enforcement Directorate (ED), could even lead to the arrest of law-abiding taxpayers.
Atishi said the move could result in small businesses being investigated by the ED, and that it's "dangerous" for the country's economy.
"Bringing GST under the Prevention of Money Laundering Act (PMLA) means that those who pay GST can now be prosecuted by the probe agency," she said.
"We have seen how the ED is used to harass people. We demanded a discussion over this at the GST council meeting, but the Centre is not ready to discuss the matter," she said.
Atishi said several other state ministers, who attended the 50th GST Council chaired by Finance Minister Nirmala Sitharaman, also raised concerns over the inclusion of GST under the country's money laundering act.
The Centre earlier this month had brought Goods and Services Tax Network (GSTN) under PMLA. Officials say the move would help in the recovery of the GST evaded by the traders through money laundering.
GSTN handles the technology backbone of the indirect-tax regime and is the repository of all GST-related information, including return, tax filing and other compliances.