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Eight Devbhumi Dwarka hotels are evading taxes, SGST says

by TLA November 13, 2021November 13, 2021
written by TLA November 13, 2021November 13, 2021
Eight Devbhumi Dwarka hotels are evading taxes, SGST says

The State Goods and Services Tax (SGST) department conducted spot investigations of eight hotels in Devbhumi Dwarka and found them to be evading tax payment, official sources said on Friday.
In one of the cases, the SGST department found that the hotel continued to function even after cancellation of registration number.
“In such cases where registrations get cancelled, the hotel or any entity cannot collect taxes. If they do, they have to inform the government,” said an official from the SGST department.
In other cases, hotels in the district were found claiming tax exemption by claiming that they were offering rooms below Rs 1,000.
“These hotels were actually charging more from the customers, but we found that they were making bills below Rs 1,000. By doing so they need not pay GST,” the official said. Hotels were also found to have wrongfully claimed Input Tax Credit.
During the investigations, the SGST department found GST tax dues worth Rs 26 lakh (including interest and penalty) are to be recovered from these eight hotels.

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