Several high-end salons in the city have come under the radar for alleged tax evasion following coordinated joint raids by State and Central GST over the past two days.
Acting on multiple complaints, officials inspected more than a dozen prominent salons on Thursday and Friday, seizing financial records for scrutiny. Authorities confirmed that detailed surveys will be conducted to assess the extent of GST evasion, and offenders will face recovery proceedings, heavy penalties, and interest charges.
According to investigators, several establishments were charging premium rates for services — including haircuts, hair colouring, spa treatments, make-up, and high-value wedding packages — without applying the mandatory 18% GST.
Luxury Salons in Prime Sectors Under Scrutiny
The raids targeted well-known salons in prime locations such as Sectors 8, 9, 26, and 35. In many cases, invoices were allegedly issued with “discount” labels to disguise taxable services, while actual earnings were concealed.
Officials said that numerous salons failed to issue bills to customers, with many transactions carried out in cash. Record checks revealed sales entries limited to beauty products, while earnings from service offerings — the primary revenue stream — were missing from official accounts.
In one instance, the Central GST team inspected a luxury salon in Sector 9 with daily takings reportedly in the lakhs. The outlet, which specialises in premium hair styling, advanced skin care, and bridal packages, is expected to face significant tax recovery demands.
Crackdown to Widen
The Excise Department confirmed that the enforcement drive will soon expand to cover more salons and beauty parlours across Chandigarh. Officials reiterated that violators will face recovery of unpaid GST along with steep penalties.
Authorities have also urged customers to always demand a GST bill when availing salon services. “Paying GST not only contributes to government revenue but also protects consumer rights,” an official stressed.
