Central GST unearths 2 Crores tax evasion

GJ Report Jammu, Feb 17: In a major case of the enforcement against tax evasion of GST in the State, the Central GST Commissionerate of J&K has detected an evasion of Goods and Service Tax to the tune of Rs 2 Crores by prominent hotels and marriage banquet halls of Jammu. On the basis of credible information collected, the Officers of Central GST on the directions of Commissioner, Gyan Sarvar and under the supervision of Additional Commissioner, C L Dogra conducted surveys simultaneously at as many as 10 premises of prominent hotels and marriage banquets halls of Jammu. These hotels have been found to be blatantly paying tax at a lower rate than what was required to be paid under GST. These hotels were using their party halls for different functions like marriage ceremonies and other social gatherings and were supplying food and beverages from their in-house restaurants. This activity is classifiable as banquet supplies and chargeable to 18 percent of GST; however these hotels and marriage banquet halls were showing these supplies as food supplies in their restaurants, thereby paying 5% GST instead of 18%, thus leading to evasion of a huge amount by misusing the provisions of notification 46/2017 dated 14.11.2017 in respect of food supply and banquets. The Central GST authorities are investigating more such units and the actual extent of tax evasion detected will be more than initial figures. Similarly, the banquet halls and marriage palaces have been found to be evading payment of GST by suppressing the actual value of their commercial transactions. During the exercise, the Central GST Officers unearthed several incriminating documents indicating a pattern of large scale undervaluation, thus evading taxes. In the past few months, there have been reports of GST evasion in many sectors. With this action, the Central GST Commissionerate has given a loud and clear message that whosoever tries to evade GST will have to face action as per law.