The State Goods and Services Tax (GST) Department in Kerala has uncovered a significant tax evasion scandal following extensive inspections across the state’s bar hotels. These operations revealed widespread turnover suppression and millions in unpaid taxes.
During a coordinated drive, code-named ‘Prancing Pony,’ the department’s intelligence and enforcement teams meticulously inspected 45 bar hotels from the late afternoon of September 25th into the early hours of September 26th. These efforts brought to light staggering figures: an estimated ₹127.46 crore in suppressed turnover and a massive ₹12 crore in evaded taxes.
The primary focus of the ‘Prancing Pony’ operation was on establishments deliberately sidestepping their tax obligations by failing to file monthly returns on time. The State GST Commissioner has issued a firm warning, stating that comprehensive investigations will continue against all businesses found to be involved in such illicit tax evasion practices.