Raid in Kerala hotels and restaurants exposes Rs 7 Cr tax revenue loss

By: Admin
June 29, 2024
Categories: GST Recent News
4 Min Read

A recent raid by the GST department on hotels and restaurants in Kerala has exposed tax evasion in sales worth Rs 140 crore, resulting in a Rs 7 crore tax revenue loss to the government.

The raid, which involved 250 officials inspecting 42 locations, spanned six months and exposed widespread fraud and manipulation of sales records.

The investigation uncovered various fraudulent practices, including issuing duplicate bills to multiple customers with the same bill number. Some establishments were seen taking back settled bills and then destroying them.

The illicit practices included non-issuance of bills, manipulation of sales data using software, receiving payments into UPI accounts of non-proprietors, including employees, and not maintaining records of catering services for weddings and other events.

Interestingly, GST Intelligence officials scrutinised videos from food vloggers and social media groups named after hotels. It was also revealed that actual sales figures were being deliberately concealed.

The GST department has warned that legal action will follow if the evaded taxes, along with equivalent penalties and interest, are not promptly paid. However, the penalty may be reduced if immediate payments are made. The department expects to recover at least Rs 10 crore, including fines and interest, from this operation.

During the raid, hotel owners agreed to pay Rs 50 lakh in taxes.

Source from: https://english.mathrubhumi.com/news/kerala/gst-raid-uncovers-tax-evasion-in-hotels-and-restaurants-1.9678912

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