Quick Summary
TheGujarat State Tax Department (SGST) has uncovered large-scale tax evasion in the food and restaurant sector under the GST Composition Scheme, officials confirmed. The crackdown follows targeted intelligence and specific complaints, with tax officials first assessing business practices discreetly as customers before conducting full-scale searches. Coordinated operations on 21st and 22nd September 2025 covered 25 premises linked to 16 taxpayers across Ahmedabad, Vadodara, Surat, Gandhinagar, B
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FAQ :
The SGST has identified unaccounted transactions worth Rs 52.07 crore.
The estimated tax evasion is approximately Rs 4.88 crore, including interest and penalties.
The operation targeted the food and restaurant sector, specifically businesses operating under the GST Composition Scheme.
Practices included using multiple QR codes to divert payments, suppressing sales by not issuing invoices, and underreporting turnover to stay within the Composition Scheme limit.
Coordinated operations covered 25 premises linked to 16 taxpayers across Ahmedabad, Vadodara, Surat, Gandhinagar, Bhavnagar, Junagadh, and Rajkot.
The article mentions the Rs 1.50 crore limit for the Composition Scheme, which some businesses unlawfully stayed within by underreporting turnover.
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