Tax Evasion

The State Taxes Department (STD) Kashmir has been actively pursuing tax evaders, particularly in the domain of Goods and Services Tax (GST). The period from April 2023 to November 2023 has witnessed significant efforts and notable outcomes in terms of penalties recovered and enforcement drives. The STD Kashmir’s relentless pursuit of tax defaulters during the specified period has resulted in the recovery of a substantial penalty amounting to Rs 3.86 crores. This penalty was imposed on GST defaulters who failed to furnish proper documents, including GST invoices and e-way bills. The enforcement drives included targeted actions against hotels in popular tourist destinations like Pahalgam and Gulmarg. Special attention was also directed towards brick kilns, particularly in the Budgam district, where surprise inspections were conducted. One noteworthy aspect is the remarkable increase of 124% in penalties imposed compared to the last fiscal year. The penalty recovery also saw a significant rise of 46.13%. The major sectors attracting penalties included metal scrap, electric and electronic goods, hotels, brick kilns, and construction materials. In Jammu, the Enforcement Central has also been instrumental in recovering penalties from GST defaulters. An impressive sum of Rs 2.01 crores was recovered from April 2023 to December 2023. This marked a substantial 53% increase compared to the previous fiscal year, indicating a robust drive against tax evasion in the region. The enforcement drives in Jammu extended beyond financial penalties, with 368 vehicles detained and approximately 103,108 e-way bills verified. The major commodities attracting penalties during this period included marble/granite, metal scrap, TMT bars, and electronic goods. On a broader scale, surprise inspections were conducted against coaching centers operating in the valley, demonstrating the comprehensive approach of the enforcement agencies to ensure tax compliance across various sectors. Additionally, flying squads were constituted throughout Jammu and Kashmir for checking GST evasions on Tuesday. The first drive in this regard was conducted in District Anantnag, driven by specific inputs. During the enforcement drive in Anantnag, joint inspections were carried out in areas where unregistered traders were reported. The focus was not only on unregistered dealers but also on registered dealers violating the GST Act and rules. The on-spot violations detected during this drive resulted in penal outcomes exceeding Rs. 10 lakhs, underlining the severity of the violations. The aggressive pursuit of tax evaders by the State Taxes Department in Kashmir and Jammu exhibits the commitment to upholding tax compliance and ensuring the proper documentation of transactions. The substantial increase in penalties imposed and recovered signifies a significant stride towards curbing tax evasion. The specific targeting of sectors prone to non-compliance, such as metal scrap and electronic goods, demonstrates a nuanced and strategic approach. As surprise inspections and flying squads continue to operate, it sends a strong message to businesses and traders that adherence to tax regulations is not only desirable but imperative. These enforcement actions not only secure penalties but also act as deterrents so that accountability is maintained in the business ecosyste