Hyderabad: The commercial taxes department has detected GST evasion of over Rs 50 crore by organisers of New Year parties in the city. Event organisers simply ignored officials’ requests to register with the department and pay GST on tickets sold.
The commercial taxes department issued a public notice a week ahead of New Year celebrations warning event organisers of stringent action if they failed to register with the department and pay the tax accordingly.
However, very few came forward to register with the department. Now, the department has formed special teams to inspect how much amount the organisers collected through sale of tickets online and off the counter.
As many as 40 special teams were formed which gathered data from hotels, resorts and pubs which held special events on the eve of New Year and sold tickets each worth Rs 1,000 to Rs 5,000.
Sources in the taxes department said, “Over 150 events were held under GHMC and HMDA limits on New Year eve. Of these, 50 events were held on a grand scale with thousands of tickets sold. The rest 100 events were comparatively smaller with a ticket sale of a few hundred. Evasion of tax was found in the bigger events organised by star hotels, prominent resorts, clubs and entertainment centres.”
“Though ticket sales of 150 organisers were tracked and verified, a major tax evasion was found at 45 events. These events were conducted on a large scale and tickets worth crores of rupees were sold. Preliminary inspection indicated tax evasion of '50 crore. Notices are being issued to 45 organisers to pay GST and penalty within two weeks,” sources said. However, officials are withholding the names of defaulters and the amount they evaded saying that there are instructions from “higher-ups” not to do so since they have agreed to clear all the arrears within two weeks.
Besides GST on tickets, the department is also tracking business turnover of organisers through sale of liquor, soda, bottled water, snacks and food items to determine how much money was collected and how much tax was paid.
