SRINAGAR: In a sweeping crackdown to safeguard public revenue, the State Taxes Department Kashmir on Tuesday launched coordinated raids across multiple locations in the Valley, targeting business entities suspected of orchestrating large-scale Goods and Services Tax (GST) fraud through bogus Input Tax Credit (ITC) claims.
Backed by a month-long intelligence-led investigation, the raids focused on sectors notoriously vulnerable to tax evasion, namely, iron, cement, and steel. These commodities, often manipulated through shell companies and fake invoicing, have been identified as major conduits for fraudulent ITC claims without actual supply of goods or services.
The enforcement action, described by officials as one of the most comprehensive anti-evasion operations in recent months, was carried out by seven specially trained teams. Each team, led by a State Tax Officer and supported by inspectors and sub-inspectors, executed early morning raids at several commercial hubs in North Kashmir, targeting both firms and individuals believed to be central to the fake billing racket.
“This was a well-calibrated, intelligence-based operation,” said Parveez Ahmad Raina, Additional Commissioner, State Taxes Department, Kashmir. “We had reasons to believe that several entities were defrauding the exchequer through manipulated GST returns and illicit ITC claims. Our investigation cell spent 30 days mapping transactions, cross-referencing GST filings, and conducting physical verifications to pinpoint the violators.”
Commissioner of State Taxes, J&K, PK Bhat, said the operation underscores the government’s zero-tolerance policy towards tax evasion and its determination to build a transparent tax regime. “These efforts are not only aimed at recovering lost revenue but also at sending a strong message: tax fraud will not go unpunished.”
Officials revealed that the fraudulent networks relied on a pattern of issuing fake invoices, often with no actual movement of goods, to avail or pass on ineligible ITC, thereby causing substantial losses to the state’s revenue. The operation is expected to lead to more penal and legal action in the coming days as scrutiny of documents and digital records continues.
By dismantling these fraudulent networks, the department hopes to tighten compliance and create a level playing field for honest taxpayers. “This is a deterrent, but also an opportunity,” said an official involved in the enforcement. “We want businesses to know that transparency is non-negotiable, and if you play by the rules, the system will support you.”
Further investigations are underway, and more actions are expected as the department analyses the data seized during the raids.
