State Tax Department raids business houses in Kashmir involved in tax evasion

STC NEWS DESK
SRINAGAR, JULY 02 (STC): The State Taxes Department Kashmir today conducted massive raids against the business entities involved in fraudulent Input Tax Credit (ITC) practices across Kashmir, said official reports.
Significant instances of tax fraud were reportedly unearthed during the raids.
Officials said 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 reports revealed that 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.
Reports state that 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,
(STC)