GST Dept Uncovers Massive ₹127 Crore Tax Evasion in Kerala Bar Hotels
Kerala GST Department’s “Operation Prancing Pony” uncovers Rs. 127 crore turnover suppression and Rs. 12 crore tax evasion in 45 bar hotels.
GST Dept Uncovers - Tax Evasion - Kerala Bar Hotels - Taxscan
GST Dept Uncovers - Tax Evasion - Kerala Bar Hotels - Taxscan
The Kerala State Goods and Services Tax (GST) Department has uncovered large-scale tax evasion in bar hotels across the state. During a special inspection drive named Operation Prancing Pony, officials found that 45 bar hotels had hidden a total turnover of Rs. 127.46 crore, leading to an estimated Rs. 12 crore in unpaid taxes.
The inspections were carried out by the department’s intelligence and enforcement divisions from 4:30 p.m. on September 25 till the early hours of the next day. The focus was on bar hotels that failed to file their monthly returns on time or deliberately underreported their sales to avoid paying taxes.
Officials said the department aims to identify businesses that are not following tax laws and ensure they pay what they owe. The GST Commissioner stated that further investigations will continue, and strict action will be taken against establishments found guilty of tax evasion.
This is part of a broader effort by the Kerala GST Department to tackle tax evasion in the hospitality sector. Earlier this year, the department launched a recovery drive under an amnesty scheme, which allowed bar hotels to settle old tax dues by paying the main amount and part of the interest. Many bar hotels used this opportunity to clear their arrears, but a significant number continued to default on payments.
Recent inspections have revealed that more than three-fourths of bar hotels in Kerala have not been paying their taxes on time. In some cases, they were found to be using methods such as not issuing bills, issuing duplicate bills, or manipulating billing software to hide real sales.
The department has made it clear that it will not tolerate such practices. More raids and inspections are expected in the coming months to ensure full compliance. Authorities have urged all business owners to maintain proper records and pay their taxes promptly to avoid penalties and legal action.
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