Bill Scam’ Exposed in Restaurant Business, 
Rs 408 Crore in Undisclosed Income Detected

A large-scale “bill scam” has been exposed in the country’s restaurant industry. The Income Tax Department conducted simultaneous surveys at 62 restaurants across 46 cities in 22 states, revealing in the preliminary investigation that nearly ₹408 crore worth of sales had been concealed.

AI-based data analysis showed that several restaurants were causing significant tax losses to the government by not issuing bills to customers or manipulating billing records. Experts say that if consumers insist on obtaining bills for every purchase or meal, such tax evasion can be curtailed to a large extent.

The Income Tax Department launched a comprehensive investigation campaign after noticing a rise in tax evasion cases in the Food & Beverage (F&B) sector. During an inquiry conducted in November 2025, indications emerged that several restaurants were adopting practices such as removing bills, not recording cash transactions, and manipulating accounts to hide their actual sales.

Following this, transaction data of nearly 1.77 lakh restaurants across the country was examined using AI-enabled analytical tools. These figures were compared with the income declared by the restaurants in their income tax returns. The investigation revealed significant discrepancies in many cases between the declared income and the actual scale of business operations.

Based on these findings, a nationwide survey was conducted on March 8, 2026, covering 62 restaurants located in 46 cities across 22 states. The preliminary findings revealed that approximately ₹408 crore in sales had been concealed. Officials indicated that the figure could increase as the investigation progresses.

Crucial Role of Consumers

Experts believe that ordinary consumers also have a very important role in preventing tax evasion. Often restaurants avoid issuing proper bills to customers or provide only a simple slip. If customers insist on a proper GST/computerized bill, it becomes difficult for restaurants to hide their sales.

According to tax experts:

  • Always collect a valid bill after every purchase or meal.

  • Check whether the GST number and details of the restaurant are mentioned on the bill.

  • If a bill is not provided, consumers can file a complaint.

This not only helps curb tax evasion but also provides customers with proof of their payment.

Opportunity to Rectify Under ‘SAKSHAM NUDGE’ Campaign

The Income Tax Department has launched the ‘SAKSHAM NUDGE’ campaign to encourage taxpayers to voluntarily correct their mistakes. Under this initiative, restaurants where discrepancies between declared income and actual business have been identified will be contacted.

In the first phase of the campaign, 63,000 restaurants will receive emails and mobile messages, requesting them to update their income tax returns before March 31, 2026, under Section 139(8A) of the Income Tax Act.

The department stated that its objective is not merely enforcement but also to promote voluntary tax compliance. However, it has made it clear that those who fail to rectify their records within the given time may face strict investigation and penal action.

Bill Scam