State Taxes Department Cracks Down on Fake ITC Fraud in Jammu Division
Jammu, December 10: The State Taxes Department (STD) of Jammu and Kashmir has intensified its efforts to combat the growing issue of fake Input Tax Credit (ITC) through a series of inspections and enforcement drives across multiple districts in the Jammu division.
These actions, carried out under the leadership of Commissioner State Taxes J&K, P. K. Bhat, and supervised by Additional Commissioner Enforcement and Administration Jammu, Namrita Dogra, specifically targeted businesses engaged in the illegal practice of converting B2C invoices into B2B invoices. This manipulation enabled the fraudulent transfer of ITC to other dealers and contractors, which was then misused to offset GST output tax liabilities instead of making payments in cash.
Enforcement teams visited various business establishments to investigate these tax evasion activities, uncovering significant violations. The department emphasized its commitment to curbing such fraudulent practices, urging all businesses to adhere to fair trade practices and comply with tax laws.
In a statement, the department appealed to taxpayers to accurately report their sales and pay the required GST in their monthly or quarterly returns to avoid enforcement actions, penalties, or legal consequences.
The State Taxes Department reaffirmed its resolve to uphold the integrity of the tax system, ensuring that all stakeholders contribute their fair share to the economy.
