Excise & GST Teams Raid Over a Dozen High-End Salons in City for Alleged GST Evasion

Last updated: 12 August 2025

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Authorities have conducted raids on more than a dozen luxury salons across the city due to suspicions of significant GST evasion. It's alleged that these premium establishments, offering services from haircuts to wedding packages, collected substantial fees but failed to remit the required 18% GST to the government. Investigations indicate that some salons encouraged cash payments without issuing invoices, thereby hiding service income and only reporting the sale of beauty products.

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 sug

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FAQ :

Luxury salons were raided by the Excise Department and Central GST officials due to allegations of large-scale GST evasion, where they are suspected of not depositing the mandatory 18% GST collected from customers.

The alleged tax evasion involved high-priced services such as haircuts, hair colouring, makeup, spa treatments, and elaborate wedding packages offered by the premium salons.

Salons allegedly evaded GST by encouraging customers to pay in cash without issuing invoices, thereby masking actual earnings from services and only reporting the sale and purchase of beauty products.

Authorities are scrutinising financial records, returns, and transaction data from the last three years to identify discrepancies and confirm tax evasion.

Citizens are advised to always request a bill for any service, as paying GST supports government revenue and protects consumer rights.

Confirmed cases of GST evasion will result in heavy penalties along with interest, in line with tax laws.

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CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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