CHANDIGARH: A turnover evasion racket worth Rs 200 crore has been unearthed among dhabas, eateries, restaurants, and fast-food outlets in Punjab. Authorities estimate that the evasion could rise to nearly Rs 500 crore, as hundreds of establishments have reportedly used specific features of billing software such as PetPooja, along with other applications, to suppress sales records by deleting cash bills and thereby evade Goods and Services Tax (GST).
Addressing a press conference, Punjab Excise and Taxation Minister Harpal Singh Cheema revealed the large-scale racket in the state’s hospitality sector, highlighting deep-rooted and systemic under-reporting of turnover.
With 882 establishments already under scrutiny and Rs 2.02 crore recovered so far, Cheema stated that the investigation is rapidly expanding. He noted that the total evasion could surge to around Rs 500 crore as more data is analysed. Major urban centres such as Mohali, Jalandhar, and Ludhiana have emerged as key hubs of suppression, particularly in sectors driven by high cash and hybrid payment systems.
Backed by advanced data analytics, inputs from the Tax Intelligence Unit (TIU) and the State Investigation and Preventive Unit (SIPU), and the success of the ‘Bill Liyao, Inam Pao’ scheme, the state government has intensified enforcement efforts.
Cheema said, “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 for FY 2025–26.”
He added, “With further analysis and the inclusion of data from the financial years 2023–24 and 2024–25, the total magnitude of evasion is likely to reach approximately Rs 500 crore.”
Detailing the findings, Cheema stated, “In the preliminary inquiry conducted so far, 239 cases have been examined, resulting in the detection of turnover suppression of approximately Rs 50 crore. This involves a tax liability of Rs 2.54 crore at a 5 percent rate, of which Rs 2.02 crore has already been recovered. Further recovery proceedings are ongoing.”
Highlighting the scale of discrepancies, he said, “We discovered turnover suppression exceeding Rs 2 crore in 3 taxpayers, above Rs 1 crore in 6 taxpayers, above Rs 50 lakh in 18 taxpayers, above Rs 25 lakh in 26 taxpayers, and above Rs 5 lakh in 91 taxpayers.”
He further noted, “Our analysis indicates systemic under-reporting in high-cash and hybrid-payment segments. 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.”
Providing a district-wise breakdown, Cheema said, “Mohali has reported the highest turnover suppression at Rs 8.16 crore, followed by Jalandhar with Rs 6.72 crore and Ludhiana with Rs 5.48 crore, making them the major contributors. Patiala and Amritsar have shown comparatively lower discrepancies, at Rs 3.83 crore and Rs 0.99 crore respectively.”
Explaining the methodology behind the crackdown, he said, “During detailed scrutiny of business data by the State Investigation and Preventive Unit, it was observed that a significant number of establishments were using online billing applications. Based on risk parameters, data analytics, and comparative analysis with GST returns, we identified possible instances of turnover suppression.”
He added, “We directed the concerned online platforms to furnish detailed transactional data, which field formations are now using for on-ground verification and reconciliation with statutory returns.”
Cheema also noted, “No discrepancies were found in 52 establishments, reflecting balanced and data-driven enforcement. The remaining cases are under active verification and detailed scrutiny, and the entire exercise is expected to be completed within one month.”
He further stated, “To strengthen the investigation, the department is in the process of obtaining UPI transaction data and other digital payment trails. This will enable deeper reconciliation of actual receipts with reported turnover and enhance detection accuracy.”