The Kerala state GST department conducted a series of raids at the houses and studios of makeup artists across the state, uncovering massive tax evasion amounting to Rs 32.5 crore. The operation, carried out at around 50 locations, followed a tip-off regarding the evasion.
The targeted individuals and establishments include those offering a range of services such as photoshoots, celebrity makeup, and bridal makeup. Many of these makeup artists operate from their homes or as freelancers without GST registration. Additionally, some studio operators have either not filed their assessments or have disclosed fewer details on GST.
“We have been monitoring these individuals and establishments for the past six months,” said a GST department officer. The raid began early in the morning and continued into the night, with inspections also held at the houses of popular makeup artists in Thiruvananthapuram, Kochi, and Thrissur.
While the total amount of tax evasion is yet to be fully quantified, officials estimate it to exceed Rs 100 crore. Some makeup artists reportedly charge fees in the lakhs, indicating significant undeclared income.
The GST department plans to impose penalties on the offenders after assessing the GST evasion. Prosecution measures will also be initiated. “We have seized several volumes of documents. Additionally, the bank account details need to be examined,” the officer added.
This crackdown highlights the extensive tax evasion occurring within the makeup industry in Kerala. The GST department’s actions serve as a warning to other freelancers and small business operators about the importance of compliance with tax regulations. The ongoing investigations are expected to uncover more individuals involved in tax evasion, leading to further legal actions and penalties.
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