Chandigarh, March 30 (IANS) Punjab Excise and Taxation Minister Harpal Singh Cheema on Monday said a massive Rs 200 crore turnover evasion racket in the hospitality sector has been exposed.

With 882 establishments already under the scanner and Rs 2.02 crore recovered so far, Cheema said the investigation is rapidly expanding and the total evasion could surge to nearly Rs 500 crore as more data is analysed.

Flagging how major urban centres like Mohali, Jalandhar, and Ludhiana have emerged as key hubs of suppression, he underscored that sectors driven by high cash and hybrid payments are at the centre of the fraud.

Cheema told them media here that through a comprehensive, state-wide, data-driven enforcement exercise covering hotels, dhabas, eateries, bakeries, sweet shops, restaurants, catering services, and similar establishments, we have identified a total of 882 establishments pertaining to 2025-26.

“With further analysis and the inclusion of data pertaining to the financial years 2023-24 and 2024-25, the total magnitude of evasion is likely to reach approximately Rs 500 crore,” he said.

Detailing findings of the ongoing verification, Cheema said, “In the preliminary inquiry conducted till date, 239 cases have been examined, resulting in the detection of turnover suppression of approximately Rs 50 crore.”

“This evasion involves a tax of Rs 2.54 crore at a five per cent rate, and our department has so far ensured the recovery of Rs 2.02 crore, with further recovery proceedings still ongoing,” he said.

Underlining the scale of discrepancies across taxpayers, Cheema said, “We discovered turnover suppression above Rs 2 crore in three taxpayers, above Rs 1 crore in six taxpayers, above Rs 50 lakh in 18 taxpayers, above Rs 25 lakh in 26 taxpayers, and above Rs 5 lakh in 91 taxpayers.”

Highlighting sector-specific trends, he said further analysis indicateed systemic patterns of under-reporting in high-cash and hybrid-payment segments. He said dhabas account for approximately Rs 10 crore of the suppression, followed by small eateries, coffee, and chai bars at around Rs 8 crore and pizza and fast-food outlets exceeding Rs 6 crore.

–IANS

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