GST officials in Ahmedabad have uncovered major irregularities during searches at the iconic Patang Hotel, Dharmadev Infrastructure’s Shyamal Crossroads office, and its Naroda construction site.
Sources said Patang Hotel’s GST registration was cancelled nearly six months ago for not depositing dues for almost two years. Despite this, the hotel continued to collect 5% GST on food bills — a violation, as businesses cannot charge GST once their registration is cancelled.
Preliminary estimates suggest over ₹1.5 crore worth of GST was collected post-cancellation, and the liability may exceed ₹4 crore with interest and penalties. Notices have been issued to the company.
Documents seized during the recent searches support these findings, and investigations into illegal billing, tax collection without valid registration, and earlier unpaid dues are ongoing.

