In a resolute effort to safeguard the public revenue and ensure compliance with the Goods and Services Tax (GST) regime, the State Taxes Department Kashmir today conducted massive raids against the business entities involved in fraudulent Input Tax Credit (ITC) practices across Kashmir.
These meticulously executed raids, planned over the past month, unearthed significant instances of tax fraud, reinforcing the department’s commitment towards curbing the fraudulent tax practices.
The raids were initiated based on credible intelligence inputs regarding widespread misuse of ITC provisions, particularly in Kashmir, where certain commodities such as iron, cement and steel have been identified as highly susceptible to tax evasion. The investigation cell of the State Taxes Department conducted thorough research over the past 30 days to identify the entities involved in generating fake invoices and passing ineligible ITC.
The department’s proactive approach was driven by a “reason to believe” that fraudulent practices were causing substantial revenue losses to the exchequer. The investigation zeroed in on sectors such as iron, cement and steel and other high-value commodities known for their vulnerability to tax evasion. These sectors have been exploited through fake billing and shell companies to fraudulently claim ITC without actual supply of goods or services in violation of the Act and rules.
The State Taxes Department’s enforcement team, under the guidance of Additional Commissioner State Taxes Department Kashmir, Parveez Ahmad Raina, worked tirelessly to map out the complex web of transactions and pinpoint the perpetrators. The crackdown was proposed and executed under the leadership of Commissioner State Taxes J&K, P.K. Bhat.
The operation comprised seven specialized teams, properly trained and adequately equipped, each led by a State Tax Officer (STO) and supported by a dedicated team of inspectors and Sub-Inspectors. These teams were tasked with conducting simultaneous raids in the early hours today across multiple locations across North Kashmir, targeting the businesses and individuals suspected of orchestrating fake ITC rackets.
Over the past month, the team cross-referenced GST returns and conducted physical verifications to identify discrepancies in ITC claims.
The underlying aim is to create a robust and transparent tax regime, deterring fraudsters from exploiting loopholes and encouraging the honest taxpayers to contribute to the region’s economic progress.