2527 defaulters owe Rs 409.31 cr Sales Tax arrears to J&K Govt

Rs 3254.83 cr generated in last two years

JAMMU, Apr 10: The Jammu and Kashmir Government has to take Rs 409.31 crores in Sales Tax arrears from 2527 defaulters under the General Sales Tax Act, 1962.

This includes Rs 179.39 crores in the Sales Tax, Rs 193.30 crores in interest levied on the original amount, and Rs 36.62 crores in penalty imposed for not paying the dues.

Chief Minister Omar Abdullah, who also holds charge of the Finance Department, shared this information in the Legislative Assembly today in reply to an unstarred question of the BJP legislator from Udhampur East Assembly segment, RS Pathania.
It was further given out that a total of Rs 3254.83 crores were collected in the Sales Tax arrears in the UT during the last two years i.e.

2024-25 and 2023-24 respectively.
Of this amount, Rs 1609.72 crores were collected in the year 2023-24 under the Jammu and Kashmir (Motor Spirit and Diesel Oil) (Taxation on Sales) Act, Svt 2005 (1948 AD) and J&K General Sales Tax Act 1962 whereas Rs 1645.11 crores were collected in the next financial year of 2024-25.

It is important to note here that the Sales Tax on petrol, diesel, ATF, and natural gas in the Union Territory of Jammu and Kashmir is collected under the Jammu and Kashmir (Motor Spirit and Diesel Oil) (Taxation on Sales) Act, Svt 2005 (1948 AD).

“As of now, no Sales Tax is applicable on any commodities in the UT under the J&K GST Act 1962,” the Chief Minister said.

Replying another question of the BJP legislator about the steps taken/being taken for effective recovery of the Sales Tax from the defaulters and strengthen compliance, enforcement, and monitoring mechanism, the Chief Minister said that the Finance Department has been continuously persuing the recovery of Sales Tax arrears under the J&K General Sales Tax Act 1962 and under the Jammu and Kashmir Land Revenue.

“In this connection, the recovery wings of the department have issued 3556 notices, 790 attachment notices of immovable/movable property/ bank accounts, 408 attachment orders, and 762 warrant of arrest under the Land Revenue Act to the defaulters,” the Minister incharge Finance Department, said.

Further, he said that recovery of pending arrears is being monitored by the Additional Commissioners/ Deputy Commissioners Recovery at Divisional level and Commissioner at the UT level.