Karnataka: Officials uncover tax evasion tactic by Biryani outlets using multiple UPI accounts

A 50-member vigilance team led by Karnataka Commissioner of Commercial Taxes C Shikha conducted thorough searches in various Biryani outlets in Hoskote located in rural Bengaluru on the suspicion of tax evasion and identified a unique modus operandi in which this was being carried out. “The modus operandi was receiving payments on multiple UPI accounts (in addition to cash), and constantly changing the UPI accounts so that the actual turnovers are suppressed and taxes are evaded,”Shika mentioned, as per a report in The New Indian Express. 

“The hoteliers were not issuing tax invoices/bills of sale for supply of food items and did not maintain proper accounts,” she added. 

One of the Biryani shops apparently operated with 30 different UPI (Unified Payments Interface) QR codes. “Additionally, during our operation, we discovered Rs 1.47 crore in cash at his residence. We promptly informed Income Tax Officials, who have initiated legal proceedings,” Shika stated as per a report in moneycontrol. 

Shika reiterated that the Commercial Taxes Department is focussed on uncovering innovations in practices of tax evasion. “This tactic was designed to conceal actual GST turnovers and evade taxes. These hoteliers were not issuing tax invoices and bills of sale for their food items, and proper accounting records were not maintained. The department is continually focusing on analysing and taking action against various methods adopted by tax evaders,” she said.