A probe into three fitness clubs in the capital Bhopal has uncovered GST evasion worth ₹1 crore. The fitness clubs deposited ₹31.82 lakh in cash. Over ₹68 lakh was recovered through ITC. In total, ₹1 crore was recovered from these centres.
The action was carried out by the Bhopal team of Central Goods and Services Tax (CGST). A month earlier, a raid had also been conducted at Fitness 365 Degree.
Simultaneous searches conducted at fitness clubs and gyms
GST is payable on the supply of fitness services, but fitness clubs and fitness centres operating in Bhopal were not paying the tax.
As a result, officers from the Investigative Wing of CGST Bhopal conducted simultaneous searches at various fitness clubs and gyms in Bhopal.
These Entities Paid Less GST
During record verification carried out as part of the search, Golden Gym Bawadiya Kala, Fitness Mark Kolar and one other entity were found to have paid less GST than due.
An investigation into GST collection has revealed that Gold’s Gym, Bawadiya Kala, Bhopal, did not deposit GST amounting to ₹25.46 lakh. A cash payment of ₹22.53 lakh was deposited by this centre.
During the search at Fitness Mark Kolar, documents revealed outstanding GST of ₹4.73 lakh. Subsequently, the operator of the fitness centre deposited ₹4.49 lakh in cash.
Action to recover the outstanding amounts from these centres will also be taken soon.
Action taken against Fitness 365 Degree a month ago
A month ago, the CGST team recovered ₹1 crore after conducting a raid at Fitness 365 Degree in the capital.
Following this, gym operator Huzeifa Qureshi deposited ₹50 lakh towards the tax evasion. The fitness centre has five branches in Bhopal, and all of them were investigated.
Source from: https://www.bhaskarenglish.in/local/mp/bhopal/news/cgst-raid-bhopal-fitness-club-tax-evasion-recovery-139273704.html
