J&K State Taxes Dept sets ₹800 crore Oct revenue target, stresses action against fake ITC

Srinagar, October 15: Commissioner State Taxes, Jammu and Kashmir, P. K. Bhat, has set a monthly revenue target of ₹800 crore for October, directing officers in Kashmir division to intensify tax compliance monitoring, improve cash collections and take strict action against fraudulent input tax credit (ITC) claims.

Bhat issued the directions while chairing a meeting to review the revenue performance of Kashmir division, organised by Additional Commissioner State Taxes, Kashmir division, Parveez Ahmad Raina, and attended by State Taxes Officers from all circles.

Raina presented a review of revenue collections, measures being undertaken to improve revenue mobilisation and the proposed course of action for meeting the annual revenue target.

The Commissioner observed that the impact of Goods and Services Tax (GST) rate rationalisation had largely stabilised. Referring to national GST revenue growth of more than 15 per cent, he asked officers to intensify collection efforts to keep Jammu and Kashmir’s growth in line with the national trend.

He also stressed the need to improve cash collections and ensure effective settlement of Integrated GST (IGST) corresponding to value addition within the Union Territory.

Focus on timely GST returns and revenue recovery

Bhat directed officers to closely monitor the filing of September GST returns, including quarterly returns under the Quarterly Return Monthly Payment (QRMP) scheme.

He said timely filing of GSTR-1 returns was important for revenue realisation, protecting the integrity of input tax credit and preventing fraudulent transactions.

Referring to approximately ₹2,500 crore reflected in GSTR-7 returns, he directed officers to undertake systematic follow-up to ensure timely realisation of the corresponding revenue.

Data-driven scrutiny and enforcement

With registration and return-filing procedures becoming simpler, the Commissioner called for greater reliance on data analytics to identify potential tax evasion.

He directed officers to scrutinise purchases from unregistered persons and verify the underlying supply chains. He also called for the use of Section 71 of the GST Act for inspection and verification of business records wherever legally permissible.

The Commissioner advised officers to issue consolidated show-cause notices covering multiple financial years, subject to statutory limitations and applicable legal provisions.

He cautioned against initiating proceedings solely on the basis of third-party information, stressing the need for independent verification and due application of mind by the concerned officers.

He also directed time-bound follow-up of show-cause notices, accountability of proper and adjudicating officers, and preparations to defend departmental cases before the GST Appellate Tribunal (GSTAT).

Inspections at tourist destinations

Highlighting the revenue potential of tourism and hospitality, Bhat directed targeted inspections at prominent destinations, including Gulmarg and Sonamarg, to ensure tax compliance and recovery of legitimate dues.

He also called for continued surveillance of sectors vulnerable to fraudulent ITC transactions and prompt issuance of alert notices wherever wrongful availment or passing on of tax credit was detected.

Concluding the meeting, Bhat and Raina directed officers to implement the instructions within stipulated timelines, emphasising accountability, enforcement and sustained revenue mobilisation to achieve the prescribed annual target.