Srinagar, July 02: In an effort to safeguard public revenue and ensure compliance with the Goods and Services Tax (GST) regime, the State Taxes Department, Kashmir, today conducted massive raids on business entities involved in fraudulent Input Tax Credit (ITC) practices across the Valley. The “meticulously planned” raids unearthed significant instances of tax fraud, officials said
According to a press release issued to Greater Kashmir, “the raids were initiated based on credible intelligence inputs pointing to 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 investigation cell of the State Taxes Department conducted thorough research over the past 30 days to identify 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. The State Taxes Department’s enforcement team, under the strategic guidance of Additional Commissioner Kashmir Parveez Ahmad Raina (JKAS), worked tirelessly to map out the complex web of transactions and pinpoint the perpetrators. The crackdown was proposed and executed under the leadership of Commissioner State Taxes J&K P.K. Bhat (JKAS).”
It reads that 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 raidsin the early hours of July 02, 2025 across multiple locations across North Kashmir, targeting businesses and individuals suspected of orchestrating fake ITC rackets. The enforcement teams, equipped with evidence and intelligence gathered through thorough analysis, targeted firms involved in issuing fraudulent invoices.
The success of this raid is a testament to the relentless efforts of the State Taxes Department’s investigation cell. Over the past month, the team cross-referenced GST returns, and conducted physical verifications to identify discrepancies in ITC claims. The team’s efforts were lauded by Commissioner P.K. Bhat, who emphasized, “Such consistent action reinforces the department’s resolve to protect public revenue and uphold tax discipline.”
The underlying aim is to create a robust and transparent tax regime, deterring fraudsters from exploiting loopholes and encouraging honest taxpayers to contribute to the region’s economic progress. The State Taxes Department remains steadfast in its mission to combat tax evasion and protect public revenue. Additional Commissioner Parveez Ahmad Raina praised the enforcement teams for their “focused and result-oriented efforts,” urging taxpayers to strictly adhere to GST regulations and avoid malpractices, it added.
