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Punjab unearths Rs 200-cr tax evasion by eateries; Cheema says amount may swell to Rs 500 cr
Cheema said 882 establishments, including dhabas, restaurants, eateries, bakeries, sweet shops, and catering services, are under the scanner as part of a state-wide crackdown.
Cheema said during scrutiny, it was found that several establishments were using online billing applications. (File Photo)
Punjab Finance Minister Harpal Singh Cheema on Monday said the state government has detected tax evasion worth about Rs 200 crore in the hospitality sector, with the amount likely to surge to Rs 500 crore as more data is analysed.
Cheema said 882 establishments, including dhabas, restaurants, eateries, bakeries, sweet shops, and catering services, are under the scanner as part of a state-wide crackdown. The exercise, based on data analytics and risk assessment, has so far covered the 2025-26 financial year, while further analysis of data from 2023-24 and 2024-25 is underway, which could significantly increase the scale of evasion.
“In the preliminary inquiry conducted so far, 239 cases have been examined, leading to detection of turnover suppression of about Rs 50 crore. This suppression translates into a tax liability of about Rs 2.54 crore, of which Rs 2.02 crore has already been recovered,” he said.
Highlighting the scale of discrepancies, Cheema said suppression above Rs 2 crore was found in three taxpayers, above Rs 1 crore in six cases, above Rs 50 lakh in 18 cases, above Rs 25 lakh in 26 cases, and above Rs 5 lakh in 91 cases.
The minister said the investigation has revealed systemic under-reporting across segments that rely heavily on cash and hybrid payment methods. “Dhabas account for around Rs 10 crore of suppression, followed by small eateries, coffee and tea outlets at about Rs 8 crore, while pizza and fast-food outlets account for over Rs 6 crore,” he added.
Providing a district-wise breakdown, Cheema said, “Mohali has reported the highest turnover suppression of Rs 8.16 crore, followed by Jalandhar with Rs 6.72 crore and Ludhiana with Rs 5.48 crore” He added that Patiala and Amritsar have shown comparatively lower discrepancies, with Rs 3.83 crore and Rs 99 lakh, respectively.
The minister said the crackdown is being carried out using advanced data analytics, with inputs from the Tax Intelligence Unit (TIU) and the State Investigation and Preventive Unit (SIPU). He also credited the ‘Bill Liyao, Inam Pao’ scheme for helping in identifying cases of tax evasion by encouraging consumers to demand bills.
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Cheema said during scrutiny, it was found that several establishments were using online billing applications, prompting the department to seek detailed transactional data from such platforms.
“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.
The department, he said, is in the process of collecting UPI transaction data and other digital payment details to further strengthen the investigation and ensure accurate matching of actual receipts with reported turnover. The minister added that the remaining cases are under verification and the entire exercise of detection and recovery is expected to be completed within one month.
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