DGGI Uncovers ₹5.69 Crore GST Evasion by 13 Andhra Hotels

The DGGI has detected about ₹5.69 crore in alleged GST evasion by 13 hotels and restaurants across Andhra Pradesh.

What did the DGGI uncover?

The Directorate General of GST Intelligence’s Visakhapatnam Zonal Unit has unearthed alleged Goods and Services Tax evasion of roughly ₹5.69 crore involving 13 prominent hotels and restaurants across Andhra Pradesh.

Officials said the establishments had suppressed the value of taxable supplies by reporting sales substantially below the amounts actually collected from customers. The alleged practice resulted in a significant gap between the businesses’ declared turnover and their actual receipts.

The investigation found suppressed taxable turnover of approximately ₹115 crore across the 13 businesses, according to officials.

The action was carried out over the past two months and involved search operations in Visakhapatnam, Rajahmundry, Eluru, Guntur, Ongole, Nellore, Kurnool and Mandapeta.

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How was turnover allegedly suppressed?

Officials said the investigation pointed to systematic manipulation of sales records rather than isolated discrepancies in accounting.

According to the findings, operators allegedly deleted specific customer invoices directly from customised billing software. The deletions were allegedly used to reduce the turnover reflected in the businesses’ records, thereby lowering their reported taxable supplies and resulting tax liabilities.

The method allowed establishments to show sales figures significantly below the amounts they had collected from patrons, officials said.

The alleged use of billing software to alter revenue records has also prompted authorities to examine whether similar methods may have been adopted elsewhere.

Is the investigation continuing?

The DGGI is continuing its investigation into the cases and is examining whether a wider network or additional entities were involved in similar digital manipulation of accounts.

An official release said the agency was investigating the matter further to identify any such links. The inquiry therefore extends beyond the tax discrepancies already detected at the 13 establishments.

The searches across multiple Andhra Pradesh cities indicate the geographical spread of the enforcement exercise. The reported ₹5.69 crore tax evasion is linked to the approximately ₹115 crore in taxable turnover that authorities said had been suppressed.

Further findings will depend on the continuing investigation into the businesses and their accounting practices.

What happens to hospitality billing now?

Tax authorities have intensified scrutiny of billing practices in the hospitality sector across Andhra Pradesh in an effort to curb digital suppression of revenue.

The findings put particular attention on customised billing systems and the manner in which invoices and sales are recorded. Authorities are examining practices in which the amounts actually collected from customers may differ from sales figures ultimately reported for tax purposes.

The case highlights the role of digital transaction records in GST enforcement, with investigators focusing on alleged manipulation within billing software itself.

For the 13 establishments covered by the action, officials have placed the alleged GST evasion at approximately ₹5.69 crore and the suppressed taxable turnover at about ₹115 crore. The DGGI’s continuing investigation will examine whether the suspected practice extends to additional entities or wider networks using similar methods.

About the author — Ayesha Aayat writes on cybercrime, digital safety, and emerging online threats. Her work focuses on public awareness, legal clarity, and technology-driven risks.