GST Dept Criticised for Demanding Tax in Cash Just to Meet Their Targets

A recent communication issued by the Goods and Services (GST) department has surprised many taxpayers. The taxpayers are now being asked to reduce the Input Tax Credit (ITC) components as much as possible and instead pay their taxes in cash. However, many professionals are opposing this move by the GST department.

The communication referred to the last meeting scheduled between officers of the DT&T and members of various industrial welfare associations. In this meeting, the taxpayers were requested to increase the cash components while filing or paying their GST returns (GSTR-3B) for the coming months of FY 2025-26.

The department claims that this request is made to help the GST department achieve its tax target for the financial year 2025-26.

As per the communication, the taxpayers are requested to pay their SGST by increasing cash components to the maximum possible for the month of February 2026. Additionally, the department also asked the taxpayers to place extra money in advance into the cash ledger before the end of March.

“Accumulated ITC in the credit ledger may be used after 31st March. These steps are being suggested in view of the unprecedented shortfall in revenue of Ward 67,” the department said.

Many taxpayers are concerned about this message, as it just seems like the department wants to boost its revenue collection by forcing taxpayers to avoid ITC and use more cash, which goes against the purpose of GST.

GST State Tax Department asking taxpayers to use more of cash component to pay their Taxes so that they can achieve there targets! And that too formally in writing!

Wow! Is this for real!

This is very shameful! pic.twitter.com/EtX7d6Thd5

— Pratibha Goyal (@PratibhaGoyal) March 18, 2026