Raids conducted on over a dozen high-end salons for GST evasion

Chandigarh, August 9, 2025

The Excise Department and Central GST teams Friday carried out joint raids on over a dozen high-end salons in the city. The action followed a series of complaints alleging that these salons were evading GST despite charging hefty amounts for their services. According to sources, many salons were providing premium services such as haircuts, hair […]

The Excise Department and Central GST teams Friday carried out joint raids on over a dozen high-end salons in the city.

The action followed a series of complaints alleging that these salons were evading GST despite charging hefty amounts for their services.

According to sources, many salons were providing premium services such as haircuts, hair colouring, makeup, spa treatments, and wedding packages — often charging large sums — but were not depositing the mandatory 18 per cent GST with the government.

Also, customers were allegedly asked to pay in cash, and no invoices were issued. Records reflected only the sale and purchase of beauty products, while actual earnings from services were being concealed.

The Excise Department seized records from prominent salons in sectors 8, 9, 26, 35, and other key locations. The excise teams have begun examining the last three years’ returns and transaction details.

Investigations have also revealed that some salons lured customers with “discount” offers and then provided services without bills, making tax evasion easier, said sources.

Meanwhile, the officials have urged citizens to always insist on a bill for any service to help curb tax evasion as paying GST not only strengthens government revenue but also safeguards consumer rights.

The Excise Department has hinted at further inspections of salons and beauty parlours in the coming days. The seized records are currently under scrutiny, and cases of GST evasion will attract heavy penalties along with interest.

[The Indian Express]