Fitness club in Surat collects fees in weekly installments to avoid full GST; gets recovery notice October 08, 2025

Surat: The State Goods & Services Tax (SGST) department has launched an investigation into a fitness and entertainment club in the upscale Vesu area of the city for allegedly not paying the full 18% GST on membership fees. Following a preliminary inquiry, the department issued a recovery demand notice of ₹35 lakh to the club operators.

Officials from the SGST department visited the under-construction club, developed by a well-known builder group, and conducted an on-site investigation today. Based on computer entries and manually recorded details, they calculated a tax evasion of ₹35 lakh.

The department had received information that, instead of collecting the full members

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