In a coordinated crackdown, the Excise Department and Central GST officials on Friday raided more than a dozen luxury salons across key city locations following allegations of large-scale tax evasion.
Sources revealed that several premium salons offering high-priced services such as haircuts, hair colouring, makeup, spa treatments and elaborate wedding packages were allegedly charging customers hefty amounts but failing to deposit the mandatory 18% GST with the government.
Investigations suggest that many salons encouraged customers to pay in cash without issuing invoices, masking actual earnings from services. Official records often reflected only the sale and purchase of beauty products, while significant income from service offerings went unreported.
The raids, carried out in prominent areas including sectors 8, 9, 26 and 35, led to the seizure of financial records. Authorities are now scrutinising the last three years' returns and transaction data to identify discrepancies.
According to officials, some salons also used "discount" offers to attract clients and then conducted transactions without bills, making tax evasion easier. The Excise Department has advised citizens to always request a bill for any service, emphasising that paying GST not only supports government revenue but also protects consumer rights.
With more inspections expected in the coming days, officials have warned that confirmed cases of GST evasion will result in heavy penalties along with interest, in line with tax laws.
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