In a major enforcement drive, the Punjab Government has detected tax evasion of around ₹200 crore in the hospitality sector, with the figure likely to rise to nearly ₹500 crore as investigations expand.
Announcing the findings, Harpal Singh Cheema said the crackdown has brought 882 establishments—including dhabas, restaurants, bakeries, sweet shops and catering services—under scrutiny.
Widespread discrepancies
The investigation, based on data analytics and risk assessment, has so far examined 239 cases, uncovering turnover suppression of about ₹50 crore. This translates into a tax liability of ₹2.54 crore, of which ₹2.02 crore has already been recovered, with further proceedings underway.
The discrepancies span multiple categories, with suppression exceeding ₹2 crore in three cases and over ₹1 crore in six cases, indicating significant under-reporting across segments.
Segment-wise impact
According to the findings, dhabas account for around ₹10 crore in suppressed turnover, followed by small eateries and tea/coffee outlets at about ₹8 crore, and pizza and fast-food outlets at over ₹6 crore.
Officials noted that these segments often rely on cash and hybrid payment systems, making them more prone to under-reporting.
City hotspots
Urban centres have emerged as key hubs of tax evasion, with Mohali reporting the highest suppression at ₹8.16 crore, followed by Jalandhar (₹6.72 crore) and Ludhiana (₹5.48 crore). Patiala and Amritsar recorded relatively lower discrepancies.
Tech-led crackdown
Theminister highlighted that the drive leverages advanced data analytics, with inputs from the Tax Intelligence Unit and the State Investigation and Preventive Unit. Authorities are also analysing UPI and digital payment data to reconcile actual receipts with reported turnover.
Cheema added that the ‘Bill Liyao, Inam Pao’ scheme has played a role in identifying evasion by encouraging consumers to demand invoices.
“Based on risk parameters and comparison with GST returns, we identified possible suppression of turnover. The data obtained is now being used for on-ground verification and reconciliation,” he said.
Outlook
With further scrutiny of data from previous financial years underway,officials expect the total detection to increase significantly. The state aims to complete the verification and recovery process within the next month.
