Page 30 - Bollion World Volume 4 Issue 8 August 2024

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supporting trade compliance and curbing potential convicted person for a minimum jail term of 3 years and
tax evasion. The implementation of these GST Council a maximum of 7 years. There is also a provision for a
recommendations was left to the respective state GST fine, at the discretion of the adjudicating authority.
commissioners to notify their applicability in their states. From a logistics perspective, organized logistics
providers firstly provide their services on a “Said to
From a logistics perspective, while this is certainly useful Contain” basis. To ensure compliance, they carry out an
for establishing bona fide trade practices, the prohibition elaborate KYC process while onboarding their customers
of multiple vehicles for a single e-Way Bill presents a for secure transportation services. They also insist on
significant challenge. To offer economically viable secure all relevant documents in GST-prescribed formats to
transportation services, secure logistics providers must be handed over by the shippers at the time of shipment
deploy multi-modal and hub-and-spoke models of transit. pick-up. This ensures compliant business operations for
This helps to ensure a faster, safer, more secure, and the secure logistics services provider.
cost-effective logistics cycle for the movement of gold
and precious cargo in India. There are possibilities of non-compliant activities in the
unorganized sector of transportation services, which
Are there any consequences of PMLA with regard operate rather informally. Due to this, there are situations
to logistics? where organized secure transportation service providers
Understanding PMLA: The Prevention of Money are subjected to enroute stoppages and extensive
Laundering Act (PMLA) was promulgated in 2002 to checks, which can affect the transit schedule and
combat the legitimizing of income and profits obtained delivery timelines of fully compliant shipments. While
through illegal means and sources. The PMLA this is an inconvenience, the importance of these acts
enables the government to confiscate properties and by regulatory authorities is acknowledged, and hence
assets earned through illegally gained proceeds, thus organized secure logistics providers support such
preventing the conversion of illegally earned money initiatives.
into legitimate money or assets. The penal provisions
of the PMLA call for rigorous imprisonment (RI) of the

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