Punjab unearths ₹200-cr turnover evasion in hospitality sector; Mohali worst hit

Excise minister Harpal Cheema says a data-driven crackdown on dhabas and restaurants is likely to reveal ₹500 crore in hidden turnover.

Punjab excise and taxation minister Harpal Singh Cheema on Monday said that a ₹200-crore turnover evasion racket has been unearthed in the state’s hospitality sector, exposing systemic under-reporting across dhabas, restaurants, and fast-food outlets.

Punjab excise and taxation minister Harpal Singh Cheema on Monday said 882 establishments in urban centres like Mohali, Jalandhar, and Ludhiana are being investigated, with ₹2.02 crore recovered so far. (HT file photo)

Addressing a press conference, Cheema said 882 establishments in urban centres like Mohali, Jalandhar, and Ludhiana are being investigated, with ₹2.02 crore recovered so far.

The minister said that these outlets were identified through a state-wide data-driven enforcement exercise. “With the inclusion of data for the financial years 2023-24 and 2024-25, the total magnitude of evasion is likely to reach approximately ₹500 crore,” he said.

In the preliminary inquiry, 239 cases have been examined, revealing turnover suppression of approximately ₹50 crore and a tax liability of ₹2.54 crore. Dhabas accounted for ₹10 crore of the suppressed turnover, followed by coffee and chai bars at ₹8 crore, and fast-food outlets at over ₹6 crore.

Explaining the crackdown’s methodology, Cheema said many establishments were using online billing applications to mask earnings. He added that the department is now obtaining UPI transaction data and digital payment trails to reconcile actual receipts with reported turnover.