SRINAGAR: The State Taxes Department in Jammu and Kashmir has significantly enhanced its enforcement measures against fraudulent Input Tax Credit (ITC) claims and tax evasion networks across the Kashmir Division.
Information was available with The Chenab Times that a high-level review meeting, chaired by Commissioner State Taxes PK Bhat in Srinagar, brought together officers from all administrative circles of the division. Key attendees included Additional Commissioner (Administration and Enforcement) Kashmir, Parveez Ahmad Raina. The meeting underscored the department’s growing concerns regarding the misuse of registrations, irregular transactions leading to revenue leakage, and the escalating issue of fake ITC claims.
During the deliberations, officials meticulously reviewed various departmental tools and processes. These included analyses derived from GST Analytics and Fraud Detection (BISAG) reports, a comprehensive examination of audit cases initiated under Section 65 of the JK GST/CGST Act for the fiscal year 2022-23, and the scrutiny of tax returns under Section 61. The enforcement outcomes related to non-filers were also a focal point of discussion.
A primary concern highlighted was the increasing sophistication of fraudulent Input Tax Credit claims. The department emphasized the critical need for a more robust integration of advanced data analytics with on-ground field intelligence to effectively detect and thwart tax evasion schemes. This proactive approach aims to identify and dismantle networks exploiting the system for undue financial gains.
The Commissioner also addressed the broader impact of recent GST rate rationalisation measures. While noting that reductions in tax rates, such as for automobiles and cement from 28 percent to 18 percent, and the move to zero tax for insurance, might lead to a temporary moderation in revenue growth in FY 2025–26, the department anticipates these changes will foster improved compliance and greater long-term stability within the tax ecosystem.
Further concerns were raised regarding tax compliance associated with payments channelled through Drawing and Disbursing Officers (DDOs) and instances where Rule 14A registrations were reportedly misused. Officers were consequently instructed to implement more stringent scrutiny protocols to safeguard against potential revenue losses stemming from these areas.
Circle-wise revenue performance was also thoroughly assessed, with a specific focus on recoveries facilitated through DRC-03 subsequent to assessments and targeted enforcement actions. The Commissioner stressed the imperative of enhancing target achievement through a combination of data-driven monitoring mechanisms and well-coordinated field operations. Officers were directed to fully leverage intelligence inputs from systems such as BISAG, PRIME, DC IT analytics, the Special Investigation Unit (SIU), and the Business Intelligence Unit (BIU) to discern evasion patterns and systematically dismantle fake ITC networks.
Reiterating the core priorities of the department, PK Bhat stated that the sustained focus remains on revenue protection, the complete eradication of fraudulent practices, and the active promotion of fair trade practices through technologically advanced enforcement strategies. The department has also called for heightened vigilance in particularly sensitive economic sectors. Officials were reminded that any perceived cancellations or loopholes in the system should not translate into revenue losses, especially when linked to unchecked government-related payments.
The assembled officials collectively reaffirmed their commitment to strengthening GST compliance across the region and to fostering a transparent tax administration system for Jammu and Kashmir, underpinned by cutting-edge technology.
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The Chenab Times News Desk
