The excise department and central GST teams on Friday raided over a dozen prominent salons in Sectors 8, 9, 26, and 35 after multiple complaints of goods and services tax (GST) evasion surfaced.
A senior excise department official revealed that these salons offered services such as haircuts, hair colouring, makeup, spa treatments, and wedding packages at exorbitant rates, sometimes even up to lakhs, but avoided the 18% GST applicable on them. Further, they asked their customers to pay in cash without receiving bills. Their official records only reflected transactions related to the sale of beauty products while the actual revenue from services were concealed.
The teams are now scrutinising these salons’ three-year returns and transaction details. As per the probe, some salons used the pretext of “discount offers” to provide services without issuing bills, making tax evasion easier.
Sector 9 salon under close watch
The central GST team is also closely monitoring a high-profile salon in Sector 9, said to be the most expensive in the city, as it sees daily sales worth lakhs and offers services at premium rates. Authorities expect significant tax recovery from this establishment.
The excise department has indicated that more salons and beauty parlours may come under the scanner in the coming days. It has also urged the public to always insist on a bill when availing of any service, so as to help curb tax evasion. Paying GST not only strengthens government revenue but also safeguards consumer rights, the officials said.
{{/usCountry}}The excise department has indicated that more salons and beauty parlours may come under the scanner in the coming days. It has also urged the public to always insist on a bill when availing of any service, so as to help curb tax evasion. Paying GST not only strengthens government revenue but also safeguards consumer rights, the officials said.
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