State Tax Team in Udhampur Cracks Down on Fake ITC, Recovers Rs 7.04 Lakh Penalty

Jammu and Kashmir News, GST Recent News – 2025

In a significant move against tax fraud, the State Taxes Department in Udhampur has uncovered a fraudulent Input Tax Credit (ITC) case, resulting in the recovery of a penalty amounting to Rs 7.04 lakh.

Details of the Fraudulent ITC Scheme

The fraud involved the wrongful issuance of bills to pass on ineligible ITC. The authorities detected this scheme through careful data analysis. A local taxpayer created multiple “bill-to-ship-to” invoices across various states, including with a firm based in Rajasthan, to illegally transfer ITC benefits.

Enforcement Action and Recovery

Inspector Mohit Jamwal led the enforcement action under the guidance of State Tax Officer Sahida Akhtar. Deputy Commissioner Anil Kumar Chandail supervised the investigation from Jammu North.

This crackdown is part of a broader effort by the department to combat tax fraud and safeguard the tax system’s integrity. In May 2025 alone, the Udhampur enforcement team recovered a total penalty of Rs 24.59 lakh.

Impressive Revenue Growth

In addition to the penalties, the department also reported a significant increase in revenue collection. Last month, the department collected Rs 25.03 lakh, marking a 28% increase from Rs 19.53 lakh during the same period last year.

Acknowledgement of Efforts

P.K. Bhat, the Commissioner of the State Tax Department, Jammu & Kashmir, praised the team’s efforts. “The consistent actions of the Udhampur team highlight our commitment to protecting public revenue and maintaining tax discipline,” he said.

Namrita Dogra, the Additional Commissioner of Jammu, also recognized the team for their focused approach and effectiveness in tackling tax evasion.

Call for Compliance and Future Action

The department has encouraged all taxpayers to follow GST regulations and actively contribute to the country’s economic progress. For any assistance, taxpayers can visit the department’s official website or contact their nearest tax office.

The State Tax Department has reiterated its commitment to a transparent and fair tax regime in Jammu & Kashmir. It warned that anyone attempting to evade taxes would face stringent legal consequences.