GST Department Raids 15 Major Waterparks in Gujarat State

State GST Department Investigates Water Parks for Tax Evasion

The State GST Department is conducting a study of trade practices across various sectors to understand the methods of tax evasion and take necessary actions against tax evaders. Due to observed tax evasion in the B2C sector, the State GST Investigation Branch carried out operations on June 6, 2024, at 27 business locations of 15 major water parks in Ahmedabad, Navsari, Gandhinagar, Himmatnagar, Kheda, Banaskantha, and Rajkot. This investigation uncovered suspicious transactions amounting to over Rs 57 crore.

Cash Sales Using Informal Receipts in Restaurants

During the investigation, various methods of tax evasion were observed. Some businesses were found to be conducting transactions in cash for items like costumes, lockers, mobile covers, and tubes without recording them in official accounts. Additionally, cash sales using informal receipts were discovered in restaurants within the water parks. In many cases, bills were not issued for these cash transactions.

Online Payments Deposited into Personal Accounts

In cases where customers make payments for resort and room rentals using QR code scanners, it has been observed that, with the intention of hiding sales, payments are deposited into the bank accounts of an employee or an associated person instead of the business account. Entry fees for water parks, including GST, are not recorded in the official books, indicating tax evasion.

Documents and Evidence of Unaccounted Transactions Found

It has come to light that the GST paid by customers was not deposited into the government treasury. This indicates that tax evasion has been committed by enjoying illegal tax benefits and avoiding legitimate tax obligations. The investigation has uncovered a large number of documents and evidence related to unaccounted transactions. There is a significant possibility that further investigation will reveal more instances of tax evasion and higher amounts of GST fraud.

Raids Conducted at These Locations

Ahmedabad

• Flamingo Waterpark and Resort
• 7S Waterpark and Adventure
• Jaladhara Waterworld
• Swapna Srushti Waterpark
  

Rajkot

• Water Valley Resort Pvt. Ltd.
• Aquatic Waterpark
• The Heaven Water Resort and Restaurant
• The Summer Waves Waterpark
  

Himatnagar

• Water Valley Waterpark
• Suswa Waterpark
  

Mehsana

• Bliss Aqua Water Resort
• Shri Ganesha Funworld
  

Navsari

• Modi Water Resort and Amusement Park

Banaskantha

• Shivdhara Resort
  

Kheda

• Watercity Waterpark