State Taxes Deptt cracks down on fake ITC, orders strict compliance
Srinagar, Sep 17: Commissioner State Taxes J&K, PK Bhat, chaired a comprehensive review meeting of the State Taxes Department, Kashmir division, to tighten tax administration, plug revenue leakages, and boost compliance.
The meeting, attended by Additional Commissioner State Taxes Kashmir, Parveez Ahmad Raina, and State Taxes Officers from all circles, focused on identifying fake Input Tax Credit (ITC) suppliers, revenue recovery, monitoring of TDS payments, timely filing of returns, audit follow-ups, verification of e-Way bills, and taxpayer education.
Bhat underlined the urgent need to track taxpayers issuing ITC through GSTR-1 but failing to file GSTR-3B returns, which has led to significant revenue shortfalls. He directed officers to expedite recovery from fake ITC cases already flagged and ensure strict adherence to return filing deadlines to maintain a steady inflow of revenue.
Emphasising accountability, Bhat called for decisive action against taxpayers flagged through intelligence reports, scrutiny of dormant dealers misusing PAN and Aadhaar, and strict monitoring of e-Way bills to prevent revenue leakage.
A review of audits under Section 65 of the J&K GST Act, 2017, was also undertaken. Officers were instructed to submit action-taken reports along with details of revenue realised post-audit and ensure timely responses to AG Audit queries.
Highlighting sector-specific risks, Bhat asked officers to keep a close watch on high-leakage sectors such as cement, iron, and mobile phones. He encouraged the use of MIS and GST Prime tools for better compliance monitoring and actionable insights.
The Commissioner stressed taxpayer engagement, urging officers to spread awareness on timely return filing and fulfilling tax liabilities in cash where applicable. He also called for proactive communication to ensure consumers benefit from the GST slab changes recommended by the 56th GST Council.
The meeting concluded with a reaffirmation of the department’s resolve to strengthen tax administration, curb evasion, and enhance revenue realisation across Kashmir.
