State Taxes Dept intensifies drive to curb GST violations

The State Taxes Department, Kashmir, on Wednesday said it has intensified its enforcement efforts against taxpayers involved in sale suppression and tax evasion by launching a large-scale inspection drive across the Kashmir division.

A spokesperson said based on intelligence inputs generated through advanced AI tools, information received from various wings of the department and extensive taxpayer scrutiny, the department conducted a massive first-of-its-kind inspection, search, and seizure drive in Srinagar, Budgam and Anantnag districts of the Valley.

The drive aims to curb fraudulent activities, including fake Input Tax Credit (ITC), wilful tax evasion, tax fraud, fake invoicing and non-compliance with GST provisions with an aim to safeguard the revenue of state exchequer.

Eight teams of more than 70 officials simultaneously inspected multiple business establishments in Srinagar, Budgam and Anantnag, verifying documents, stock registers, bill books and physical stock positions to detect GST violations.

Speaking on the enforcement action, Additional Commissioner Parvaiz Ahmad Raina stated, “The inspections are part of our ongoing enforcement activities. Eight dedicated teams have been deployed to carry out these inspections, targeting dealers involved in sale suppression, fake ITC claims, and fraudulent invoicing.” He further added that the department is committed to taking strict action against those engaging in tax evasion and fraudulent activities, he added.

The State Taxes Department has urged all dealers to adhere to fair trade practices and refrain from tax evasion. It advised businesses to conduct invoice-based transactions, report actual sales, and pay the applicable GST in their monthly or quarterly returns to avoid penalties and enforcement actions.