GST Department Unearths Rs 127.46 Crore Turnover Suppression in Bar Hotels



Quick Summary
The Kerala State GST Department has discovered significant tax evasion totalling Rs 12 crore, stemming from Rs 127.46 crore in suppressed turnover. This was revealed during a surprise inspection operation named 'Prancing Pony' targeting 45 bar hotels suspected of under-reporting sales and failing to file GST returns. The department has vowed strict action against those found guilty and plans to continue similar crackdowns across the state.

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.

Kerala Bar Hotels Evade Rs 12 Crore GST

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.

FAQ :

The Kerala GST Department detected turnover suppression amounting to Rs 127.46 crore.

The evasion of GST tax amounted to Rs 12 crore.

The special drive was code-named "Prancing Pony".

A total of 45 bar hotels were inspected during the operation.

The Kerala State GST Commissioner confirmed that further investigations are underway and assured stringent action against bar hotels found guilty of tax evasion.

Yes, the department has indicated that similar enforcement drives will continue across the state in the coming weeks.




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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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