Commissioner State Taxes J&K P.K. Bhat chairs extensive review to curb Fake ITC, tighten GST compliance, and boost revenue in Kashmir Division

SRINAGAR: To evaluate ongoing departmental activities, address key operational challenges, and strategize enhanced tax compliance and revenue augmentation, Commissioner State Taxes J&K, P.K. Bhat, chaired an extensive review meeting of the State Taxes department, Kashmir division. The meeting was attended by Additional Commissioner State Taxes Kashmir, Parveez Ahmad Raina; State Taxes Officers from all circles across the division besides others.

The meeting discussed threadbare identification of fake ITC suppliers, realisation of revenue from fake ITC cases, monitoring of TDS payments, timely filing of returns, action on intelligence reports, addressing dormant dealers, audit and revenue realization, verification of e-Way bills, leveraging MIS & GST prime tools, sector-specific enforcement, and taxpayer engagement and education.

Commissioner highlighted the critical need to identify taxpayers who issue Input Tax Credit (ITC) through GSTR-1 but fail to file GSTR-3B returns, leading to significant revenue shortfalls. He also stressed the importance of expediting efforts to recover revenue from fake ITC cases that have already been identified. Officers were instructed to ensure that taxpayers receiving Tax Deducted at Source (TDS) payments from deductors are filing their GSTR-3B returns on time. Emphasis was also laid on strict adherence to return filing deadlines to ensure consistency in revenue inflow.

CST directed prompt and decisive action against taxpayers flagged through intelligence inputs. Officers were asked to thoroughly analyze these cases and initiate necessary corrective measures. Commissioner underscored the need to track and scrutinize dormant dealers who file Nil returns but continue receiving goods using PAN and Aadhaar details. Officers were asked to ensure such practices are identified and curbed.

On the occasion, a review of audits conducted under Section 65 of the J&K GST Act, 2017 was undertaken. Officers were directed to submit action-taken reports along with details of revenue realized post-audit. Commissioner also advised officers to ensure timely responses to AG Audit queries to prevent delays in revenue recovery.

He also called for proper scrutiny of e-Way Bills as a key measure to prevent revenue leakage. Officers were instructed to routinely verify the movement of inward and outward supplies to ensure proper tax realization. Bhat encouraged officers to utilize technological tools like MIS (Management Information System) and GST Prime, emphasizing their value in generating actionable insights, saving administrative time, and enhancing compliance monitoring.

He called for special focus on high-risk sectors such as cement, iron, and mobile phones, where revenue leakage is often observed. Officers were directed to enforce GST laws strictly and close existing loopholes. Commissioner reiterated the need to raise awareness among taxpayers about the importance of timely return filing and fulfilling tax liabilities in cash, where applicable. Officers were urged to actively engage with the taxpayer community to provide support and guidance.

CST reaffirmed the department’s commitment to ensuring accountability, maintaining vigilance, and adopting a proactive approach to identifying non-compliance and boosting revenue generation. Additional Commissioner Kashmir advised officers to adopt proactive measures to ensure that the benefits of GST slab changes, as per the recommendations of the 56th GST Council, are passed on to consumers. He emphasized the importance of taxpayer education and effective communication to address concerns arising from these changes and to prevent any adverse impact on revenue growth.

The meeting concluded with directives for all State Taxes Officers and a strong reaffirmation of the department’s resolve to strengthen tax administration and enhance revenue collection across Kashmir division.