In Udhampur, Taxman Busts Major ITC Fraud, Recovers Rs 9.72 Lakh Penalty

SRINAGAR: The Enforcement Team of the State Taxes Department in Udhampur has found a case of fraudulent Input Tax Credit (ITC) involving multiple inter-state transactions. The department successfully recovered a penalty amounting to Rs 9,72,190 in connection with the case, which was exposed through meticulous data analysis of five taxpayers.

According to officials, the detected taxpayers had been issuing multiple fake bills and shipping invoices to dealers across various states—including Gujarat, Punjab, Haryana, Uttar Pradesh, and Jammu & Kashmir—with the sole intention of unlawfully availing and passing on ITC benefits.

The enforcement operation was carried out by a team led by Inspectors Raj Kumar Sadotra and Mohit Jamwal, under the supervision of State Tax Officers Babu Pardeep Kumar and Sahida Akhtar. The team operated with strategic inputs and guidance from Anil Kumar Chandail, Deputy Commissioner, State Taxes Enforcement, Jammu North.

This crackdown is part of the department’s broader mission to clamp down on tax evasion and ensure the protection of government revenue. The success of this operation underscores the growing use of data analytics and inter-departmental coordination in detecting and dismantling tax fraud networks.

Notably, the GST Enforcement Team in Udhampur has realised penalties amounting to Rs 98.25 lakh during the current financial year—a significant 42 percent increase from Rs 69.07 lakh recovered during the corresponding period last year.

The entire enforcement action was carried out under the leadership and direction of PK Bhat, Commissioner, State Tax Department, Jammu and Kashmir. He commended the Udhampur team for their diligence and professionalism in the case. Additional Commissioner Namrita Dogra also lauded the team’s focused and result-driven approach in strengthening tax compliance.

In a statement, the department urged all taxpayers to adhere strictly to tax laws and contribute responsibly to the nation’s economic development. Taxpayers seeking guidance are encouraged to visit the department’s official website or approach their nearest tax office for assistance in maintaining compliance.