Archive · 28 Sep 2025
Gujarat Restaurants Face Investigation for Tax Evasion
The Gujarat State Tax Department investigated restaurants for not paying the correct taxes.
The department visited restaurants to observe their business activities.
They discovered that some restaurants used multiple QR codes to hide payments, didn't give receipts, and lied about their income to avoid taxes.
These actions helped restaurants to falsely claim benefits.
The investigation found that restaurants concealed over ₹52 crore of transactions and evaded approximately ₹4.88 crore in taxes.
The department is taking legal action to recover the lost revenue.
Gujarat State Tax Department investigated tax evasion in restaurants.
Officials posed as customers to assess business practices.
Coordinated searches occurred across seven cities.
Restaurants allegedly used multiple QR codes for payments.
Businesses suppressed sales and underreported revenue.
- Who
- Gujarat State Tax Department (SGST)
- What
- Uncovered tax evasion in the food and restaurant sector.
- When
- September 21-22
- Where
- Ahmedabad, Vadodara, Surat, Gandhinagar, Bhavnagar, Junagadh, and Rajkot, Gujarat
- Why
- To address complaints and intelligence regarding fraudulent practices in the restaurant sector.
- Department
- Gujarat State Tax Department (SGST)
- Alleged Offense
- Tax Evasion
- Sector
- Food and Restaurant
- Operation Dates
- September 21-22
- Locations
- Ahmedabad, Vadodara, Surat, Gandhinagar, Bhavnagar, Junagadh, and Rajkot
- Suspected Practices
- Multiple QR codes, suppressed sales, underreported turnover
- Unaccounted Transactions
- ₹52.07 crore
- Tax Evasion
- ₹4.88 crore (including interest and penalties)
