The State Goods and Services Tax (GST) Department, in Statewide inspections carried out in hotels and restaurants on Wednesday night, detected suppression of turnover to the tune of ₹81.7 crore.
The turnover suppression has resulted in a loss of ₹4.08 crore in taxes to the State, the department said.
‘Operation Moonlight’ was conducted by the department’s investigation wing from 7.30 p.m. on June 29 to 6 a.m. on June 30 in 32 selected hotels and restaurants. It was found that several establishments had engaged in the fraud by neglecting to disclose the actual turnover and file returns, or obtain GST registration.
The Department is examining whether establishments that are not authorised to collect GST had done so.
The law requires hotels that have an annual turnover above ₹20 lakh to obtain registration under the GST Act. A hotel that functions 365 days a year and has an average daily turnover in excess of ₹5,479 is liable to obtain the registration.
The inspections were led by Joint Commissioner Saju Nambadan, Deputy Commissioner Winston, Johnson Chacko and Madhu N. Panicker. The inspections will continue in the days ahead, the department said.
