JAMMU: State Taxes Department (STD) has taken strict measures to curb the menace of fake Input Tax Credit (ITC) by conducting inspections and enforcement drives across several districts of Jammu division. The STD carried out these drives under the guidance of Commissioner State Taxes J&K, P K Bhat and under the supervision of Additional Commissioner Enforcement and Administration Jammu, Namrita Dogra.
The teams specifically targeted dealers who were found engaged in the recycling of B2C invoices into B2B invoices, thereby passing on ITC to other dealers and contractors. The ITC was being used to settle GST output tax instead of being paid in cash. The teams visited various business premises to investigate the malpractices.
The department urged the dealers to follow the fair-trade practices and avoid indulging in tax evasion activities or practices involving fake ITC. Furthermore, the department appealed all taxpayers to report their actual sales and pay the necessary amount of GST in their monthly/quarterly returns to avoid enforcement actions and penalties.
