Investigation of Rajasthali Resort takes another turn

The investigation into the GST evasion case of Rajasthali Resort and Studio Limited, a company that operates a luxury resort Rajasthali on Jaipur-Delhi road, may now extend to the people providing various services to the resort.

The Anti-Evasion Branch of Jaipur CGST Commissionerate, which exposed the GST evasion of more than Rs 5.50 crore in the resort, would send notice to other taxpayers related to this matter to inquire their side. Since the scope of GST evasion in this case is more than Rs 5 crore, the resort operators may face arrest. Following a tip-off, Jaipur CGST Commissionerate conducted raids on Rajasthali Resort on Jaipur-Delhi road and its office in CScheme recently.

It was revealed that the company was depositing GST only at the rate of 5 percent on the services provided in the restaurant of its resort, whereas due to the rent here being more than Rs 7500 per day, this rate is 18 percent. Similarly, the company also collected GST at the rate of 5 per cent on the events organized at the resort, which should have been at the rate of 18 per cent. During the investigation, officials collected evidence of irregularities worth Rs 2.90 crore.

Sources said that according to the documents found, there is a big difference between the amount recovered from the events organized in the resort and the amount shown in the account books. It was found that the amount billed was less than the rate at which services were provided to the customers.

After the raids, the company directors Girish Agrawal, Asha Agrawal and Akash Agrawal also paid GST of about Rs 2 crore. Now, the records of those providing events, food and other services at the Resort will be scrutinized.