Karnataka commercial taxes dept finds 30 UPI QR codes, Rs 1.47 crore from biryani shop owner in Hoskote

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In a crackdown on tax evasion, Karnataka commercial taxes department has exposed alleged Goods and Services Tax (GST) evasions by biryani shop owners in Hoskote, located in the Bengaluru rural district.

Hoskote, located around 30 kilometres from the Central Business District of Bengaluru, is a popular destination for late-night and early-morning drives, attracting numerous biryani enthusiasts.

Karnataka Commissioner of Commercial Taxes C Shikha said a 50-member vigilance wing conducted extensive searches in Hoskote, revealing a modus operandi employed by these biryani vendors.

"We discovered a biryani shop owner with 30 UPI (Unified Payments Interface) QR codes. Additionally, during our operation, we discovered Rs 1.47 crore in cash at his residence. We promptly informed Income Tax Officials, who have initiated legal proceedings," said Shikha.

Shikha further explained that many shop owners were accepting payments through numerous UPI accounts, in addition to cash transactions, and frequently changing the UPI accounts.

"This tactic was designed to conceal actual GST turnovers and evade taxes. These hoteliers were not issuing tax invoices and bills of sale for their food items, and proper accounting records were not maintained. The department is continually focusing on analysing and taking action against various methods adopted by tax evaders," she emphasised.

Asked about the legality of keeping cash at home, a senior official said, "The Income Tax Act in India does not specify a specific limit on the amount of cash one can keep at home. However, the act does require individuals to provide an explanation for the source of any significant cash deposits or holdings if they are questioned by tax authorities. It is essential to ensure that any cash you possess is properly accounted for and can be explained in the event of scrutiny."

Regarding multiple UPI transactions, the official said, "There have been suspicious transactions involving tax evasion through deposits into different accounts without proper accounting."