GST Enforcement team of Central Kashmir imposes Rs.23.4 lakh penalty on tax violations in cement, scrap, iron & timber

• 162% rise in penalty of scrap,  60% in iron achieved

SRINAGAR: In a breakthrough, the Enforcement (Central) wing of the State Taxes Department, Kashmir, imposed a penalty of Rs 23,41,406 on major commodities, including cement, scrap, TMT bars, timber and plywood, in the financial year 2024-2025 upto December.

In view of the recent directions received from higher authorities to keep a strict vigil on major goods being transported across the state, special enforcement efforts were led by Deputy Commissioner State Taxes Enforcement (Central) Kashmir Waseem Raja under the overall supervision of Commissioner State Taxes P K Bhat.

As many as three field teams and a flying squad were constituted to carry out enforcement activities across Srinagar, Budgam and Ganderbal districts. These teams comprised State Taxes Officers, besides inspectors, sub-inspectors and guards of the wing. To achieve maximum detections and deterrence, the teams also conducted surprise checks and inspections during late hours and on Sundays as well.

At Srinagar airport, a special enforcement team headed by STO is ensuring a vigil on mobile phones and other cargo items. It is worth mentioning that a penalty of Rs 9 lakh was levied on tax violations pertaining to cement up to December this year. Tax-evading scrap shipments drew a penalty amounting to Rs. 2,47,494 till December this year, against Rs 94,590 levied in the financial year 2023-2024, marking a staggering rise of 162% from last year.

Fines worth Rs. 9,84,654 imposed on timber and plywood defaulters up to December saw a 95% increase from previous year’s penalty of Rs 5,03,762. Moreover, recording a 60% increase, seizures related to TMT bars churned out a penalty amounting to Rs. 1,99,800 till December, against last year’s Rs. 1,24,958.

In an analysis of violations under scrap and cement, a substantial surge in penalties was witnessed in the months of September, October and November 2024. This financial year, a penalty of Rs. 1,06,100 was realized from scrap cases in the said months, registering an astounding rise of 268% against Rs. 28,800 charged in FY 2023-24. The enforcement teams imposed a penalty of Rs 5,01,580 on cement from September to November this year.

To achieve more accuracy and efficiency in enforcement activities, a Data Analytics Cell was constituted by DC Enforcement (Central). The Cell is tasked with collecting valuable inputs through the online MIS/E-way bill portal, tracking watchlist transporters, maintaining databases and sharing the same with the field teams concerned on a daily basis.

“The idea behind the creation of the Data Cell is to obtain vital inputs regarding enroute vehicles through smart work. The online MIS portal provides a plethora of valuable information such as live vigilance, watchlist transporter details, among others, and the same is put to good use in the field,” said DC Enforcement (Central).

Lauding the efforts of the field teams, Raja said, “The higher authorities had recently issued directions to keep a close watch on certain commodities and our teams have done very well so far. It is our aim to enhance our activities and achieve more deterrence and tangible results by the end of this financial year.”

Till December, the enforcement wing levied a total penalty of Rs 1.52 crore on tax violations in the financial year 2024-2025. Over two lakh e-way bills were verified during round-the-clock enforcement activities from April to November 2024, marking a 45% increase from the last year in the same period.