In a major crackdown on tax default, the Jammu & Kashmir administration has ordered an immediate halt to government payments to three defaulting contractors in Kishtwar- one of whom is sitting MLA Payaray Lal Sharma who has given his support to the ruling National Conference. The move has triggered serious political and administrative ripples across the Union Territory.
Acting on verified inputs from the BOWEB GST portal, the Additional Commissioner of State Taxes (Administration & Enforcement), Jammu, issued a directive dated 15 July 2025, flagging prolonged tax non-compliance by three contractors operating in Kishtwar district:
M/s S&S Constructions, GSTIN 01ADLFS0099M1ZR
M/s Sharma Construction Kishtwar, GSTIN 01AYFPS144EZZL
M/s Payaray Lal Sharma Contractor, GSTIN 01AYFPS144E1ZM
The last name stands out - Payaray Lal Sharma is not just a contractor but also a sitting Member of the Legislative Assembly (MLA) from the ruling National Conference.
According to the tax department, the three firms have persistently defaulted on filing returns and paying GST liabilities under the CGST/J&K GST Act, 2017. Despite repeated reminders, their non-compliance status continues, resulting in a revenue loss of ₹3.88 crore to the exchequer.
The directive further notes that Drawing and Disbursing Officers (DDOs) had continued releasing payments to these entities without verifying GST status, in violation of standing instructions and finance department guidelines.
In response, District Development Commissioner (DDC) Kishtwar, Pankaj Kumar Sharma, JKAS, has issued an immediate order (dated 5 August 2025) to withhold all pending and future payments to the three contractors unless they obtain a No Objection Certificate (NOC) from the State Taxes Department.
The inclusion of a ruling party MLA in the list of defaulters has raised eyebrows across administrative and political circles. The opposition is likely to seize the opportunity to demand accountability and question the moral standing of the government.
Observers say the development underlines the administration’s renewed push for tax discipline and fiscal accountability, regardless of political affiliations. However, it also places pressure on the National Conference to clarify whether elected representatives can continue to operate businesses that default on tax duties while holding public office.
The order has been copied to the Divisional Commissioner Jammu, Commissioner State Taxes, and the Additional Commissioner (A&E) to ensure coordinated enforcement.