The Intelligence and Enforcement Wing of the Kerala State Goods and Services Tax (SGST) Department has detected alleged tax evasion of ₹7.56 crore following a series of joint inspections conducted at vehicle parking facilities operating within railway premises across the State.
The inspections were carried out on September 16 at 69 locations connected with 22 parking service providers. The locations covered the taxpayers’ principal places of business, residential premises and additional business premises.
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Inspections Reveal Alleged Turnover Suppression of ₹42 Crore
According to a statement issued by the State GST Commissioner on September 18, the inspections prima facie revealed significant discrepancies between the turnover reported by the parking service providers in their GST returns and the actual revenue generated from their services.
The department has estimated that turnover amounting to approximately ₹42 crore had allegedly been suppressed. Based on the preliminary findings, the corresponding tax evasion has been estimated at ₹7.56 crore.
The investigation reportedly found that the taxpayers had not fully disclosed the revenue earned from vehicle parking services in their statutory returns.
Multiple QR Codes Used for Financial Transactions
During the inspections, GST officials also detected instances where multiple QR codes were allegedly being used for collecting payments.
The discovery of multiple QR codes has become an important part of the department’s investigation, as digital payment records can potentially help officials establish the actual volume of transactions and compare them with the turnover disclosed in GST returns.
The department is examining the financial transactions and other records gathered during the inspections to determine the full extent of the alleged tax evasion.
Digital Data and Business Records Examined
The State GST Intelligence Wing used different sources of information during the investigation.
Data relating to business transactions of 13 taxpayers was retrieved from software systems used by the businesses. In the case of the remaining taxpayers, officials collected information from account books, registers and mobile chat records.
The use of digital records, payment information and business documents is expected to assist the department in reconstructing the actual turnover generated by the parking facilities.
The State GST Commissioner stated that a detailed investigation into the matter is currently underway. The preliminary figures may therefore be subject to further verification and assessment as the investigation progresses.
GST Intelligence Wing Expands Parking Sector Data Collection
The action against railway station parking facilities forms part of a broader enforcement exercise by the Kerala SGST Department.
The department has reportedly collected data concerning more than 1,000 vehicle parking facilities operating at different establishments across the State. These include parking facilities located at KSRTC depots, hospitals, shopping malls and cinema theatres.
The data is being examined to identify establishments where there may be discrepancies between actual business activity and turnover reported for GST purposes.
The department has indicated that inspections will continue at locations suspected of involvement in tax evasion.
Public Can Report Suspected GST Evasion
The State GST Department has also urged members of the public to provide information regarding suspected tax evasion in the parking services sector.
Information can be reported to the department through inform.sgst@kerala.gov.in.
The department has reiterated that establishments found to be engaging in tax evasion will face stringent investigation and enforcement action in accordance with the applicable GST law.
The latest inspections highlight the increasing use of data-driven enforcement by the State GST authorities, including scrutiny of digital payment transactions, business software, accounting records and other electronic evidence to identify discrepancies between declared and actual turnover.
