GST evasion worth ₹115 crore detected in Andhra Pradesh hotels

Tax authorities in Andhra Pradesh have identified widespread goods and services tax evasion totalling ₹115 crore across multiple hotel establishments in the state. The Directorate General of GST Intelligence detected the discrepancies during routine compliance checks, revealing a pattern of deliberate misrepresentation by hospitality operators.

The investigation found that hotel chains and independent properties consistently suppressed the declared value of taxable supplies to evade their GST obligations. While the establishments collected full payment amounts from guests, they reported substantially lower sales figures in their tax filings, creating significant gaps between actual and reported revenue.

Officials determined the evasion was not incidental but systematic in nature, suggesting coordinated efforts to understate turnover across the sector. The practice allows hospitality businesses to reduce their GST liability while maintaining full revenue streams from customer transactions.

The findings highlight ongoing compliance challenges in India's hospitality industry, where tax authorities have intensified monitoring to prevent revenue leakage. The DGGI has initiated recovery proceedings and further investigations are underway to determine the full extent of unpaid taxes and potential penalties applicable to the establishments involved.