What is the estimated amount of GST evasion in India's restaurant sector?

The estimated amount of GST evasion in India's restaurant sector is nearly Rs 70,000 crore.

Which states reported the highest value of deleted billing records in the GST scam?

Karnataka reported the highest value of deleted billing records at approximately Rs 2,000 crore, followed by Telangana and Tamil Nadu.

How was the GST evasion scam in restaurants uncovered?

The GST evasion scam was uncovered through AI analysis of billing data, revealing suppressed sales and manipulation of sales records by eateries over several financial years.

Home / Business and Economy / Rs 70,000 Cr GST Scam Rocks India's Restaurants

Rs 70,000 Cr GST Scam Rocks India's Restaurants

19 Feb

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Summary

AI analysis revealed suppressed sales of Rs 70,000 crore.
Eateries hid sales and dodged taxes over six financial years.
Probe began with routine searches in Telangana and Andhra Pradesh.

Rs 70,000 Cr GST Scam Rocks India's Restaurants

A significant Goods and Services Tax (GST) evasion scam, estimated at nearly Rs 70,000 crore, has been unearthed within India's restaurant industry. This extensive probe, initiated following routine searches in cities like Hyderabad and Visakhapatnam, has revealed that numerous eateries, including popular biryani chains, allegedly concealed substantial sales figures over six financial years, commencing from 2019-20.

The investigation, spearheaded by the Income Tax Department's Hyderabad unit, involved a deep forensic analysis of 60 terabytes of billing data from a software platform used by over one lakh restaurants nationwide. Employing advanced analytics and Generative AI tools, officials identified suppressed sales amounting to at least Rs 70,000 crore since 2019-20. Initial findings in Telangana and Andhra Pradesh alone pointed to hidden sales of Rs 5,141 crore.