The Kerala State Goods and Services Tax (SGST) Department has uncovered massive tax evasion during surprise inspections at bar hotels across the state. According to an official statement released on Saturday, the enforcement and intelligence wings detected turnover suppression of Rs 127.46 crore and tax evasion amounting to Rs 12 crore.
The special drive, code-named "Prancing Pony," was carried out between 4:30 p.m. on September 25 and the early hours of September 26. Teams inspected 45 bar hotels suspected of evading taxes by deliberately suppressing sales figures and defaulting on the timely filing of monthly GST returns.
Large-Scale Irregularities Detected
Preliminary findings suggest that several establishments had been under-reporting sales, thereby evading significant amounts of GST. Officials stated that the discrepancies found in accounts and sales records point toward systemic malpractice in multiple outlets.
Strict Action Ahead
Kerala State GST Commissioner confirmed that further investigations are underway and assured stringent action against bar hotels found guilty of tax evasion. "Businesses indulging in such practices not only cause loss to the exchequer but also gain an unfair advantage over compliant taxpayers," the Commissioner noted.
Intensified Crackdown
The department has indicated that similar enforcement drives will continue across the state in the coming weeks, with a focus on sectors vulnerable to tax evasion. The crackdown is part of the state's broader initiative to strengthen compliance and curb revenue leakage under GST.
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