Directorate General of GST Intelligence raids Pune restaurants

ST Correspondent
Thursday, 29 March 2018

Pune: In a raid conducted by Directorate General of GST (Goods and Service Tax) Intelligence (DGGI), Pune Zonal Unit Two, Pune-based restaurants were found to be involved in tax evasion. A press release issued by DGGI stated that one of the restaurants was found collecting GST on alcoholic drinks even though at present, alcoholic drinks are outside the purview of GST. 

Pune: In a raid conducted by Directorate General of GST (Goods and Service Tax) Intelligence (DGGI), Pune Zonal Unit Two, Pune-based restaurants were found to be involved in tax evasion. A press release issued by DGGI stated that one of the restaurants was found collecting GST on alcoholic drinks even though at present, alcoholic drinks are outside the purview of GST. 

“Amount of Rs 20 lakh was collected by the restaurant through alcoholic drinks and the same was not deposited to the government exchequer. It was also found that a restaurant having a turnover of more than Rs 6.5 crore, had not registered for GST. As per the law, it is mandatory for any restaurant to register for GST if its annual turnover crosses Rs 20 lakh. DGGI officers directed the owners of that restaurant to obtain GST registration immediately pay the GST amount,” the press note stated. The raids were conducted in Mumbai and Pune by Vikram Wani, Additional Director, DGGI and Vaishali Patange, Deputy Director, DGGI.

Raids were also conducted at firms engaged in chartered accountancy and consulting services. It was found that the firms collected GST from their customers of around Rs 13.5 crore and had not paid it to the government. During the searches, GST of 
Rs 2 crore was recovered from them on the spot.

“People should come forward and contribute to the effective implementation of GST by sharing information about GST evasion instances. The anonymity of such persons would be maintained,” stated the press release by DGGI.

Sources from the DGGI said that Hotel Blue Shack in Mundhwa did not register itself for GST and Hotel Night Riders was charging Goods and Service Tax on alcoholic drinks.

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