GST raids in hotels find tax evasion worth Rs 7 cr

THIRUVANANTHAPURAM: Tax evasion transactions worth Rs 139.5 crores were found in raids conducted in 42 hotels in the state. Due to this, the state government has lost Rs 7 crores in taxes. Some of the hoteliers managed to escape action by paying taxes of about Rs 50 lakhs. GST officials said that efforts to detect tax evasion will continue to be vigorous. About 50 teams comprising more than 250 personnel from the intelligence, enforcement and sections of the GST department conducted the raid.

Many hoteliers, despite serving food at catering, weddings, parties and trade fairs, try for ways to avoid it in accounts. Many methods were used for tax evasion, such as not paying bills in many restaurants, taking money from customers and then taking back the bill, falsifying software to show lower expenses, issuing new bill series every day, giving bills to many people with the same number, taking money through G Pay and UPI in the name of employees and others.