The Uttarakhand State Tax Department has detected an estimated ₹2.5 crore revenue loss linked to a resort in Bhalon village, Ramnagar, Nainital district. The development could affect the state’s GST collection from tourism-related services in the area.
Officials searched the resort and examined its business documents and accounts. After the department identified discrepancies, the resort management deposited ₹1 crore late at night and assured officials that it would submit the remaining amount soon.
What the department found
According to the State Tax Department, the resort was providing services to tourists in Uttarakhand while showing its billing in another state. Officials said this arrangement had affected the state’s tax revenue.
The department also said the resort had not been paying Uttarakhand State Tax since 2025. The findings concern the resort’s tax and billing practices; the department’s action does not by itself establish a court judgment on the matter.
The Special Investigation Branch (SIB) of the State Tax Department had been monitoring the resort’s business activities for several months. The raid was conducted by 3 teams under the direction of Commissioner Tax Prateek Jain and the guidance of Additional Commissioner, Kumaon, Rakesh Sharma.
Focus on out-of-state billing
The department said some resort operators and service providers serve tourists in Uttarakhand but issue bills through headquarters located in other states. Officials said this may affect both the State Goods and Services Tax (SGST) and Central Goods and Services Tax (CGST) revenue connected with business carried out in Uttarakhand.
The case highlights the tax implications of billing arrangements when services are delivered locally but invoicing is shown elsewhere. The department’s stated objective is to ensure that tax linked to business conducted in Uttarakhand is paid appropriately in the state.
Monitoring expanded in tourism areas
The State Tax Department said it is continuing to monitor resort and other commercial activities in Ramnagar, Nainital and nearby tourism areas. The move is intended to check whether businesses operating in the state are meeting their tax obligations.
Assistant Commissioners of the SIB, Hari Om Verma and Shishpal Singh, were among the officials present during the operation. The department has not provided a further payment date for the remaining amount beyond the management’s assurance that it would be deposited soon.
Conclusion
The Ramnagar resort case involves an estimated ₹2.5 crore revenue loss, with ₹1 crore deposited after the raid. The State Tax Department is continuing its scrutiny of tourism businesses and awaits payment of the remaining amount.
Frequently Asked Questions
Q. Where was the resort located?
The resort was located in Bhalon village in Ramnagar, Nainital district.
Q. How much revenue loss did the department identify?
The State Tax Department identified an estimated revenue loss of ₹2.5 crore.
Q. How much money did the resort management deposit?
The management deposited ₹1 crore late at night after the department’s investigation.
Q. What did the management promise regarding the remaining amount?
It assured the department that the remaining amount would be deposited soon.
Q. What billing practice did officials flag?
Officials said the resort provided services in Uttarakhand but showed its billing in another state.
Q. Since when did the department say the resort had not paid Uttarakhand State Tax?
The department said the resort had not been paying Uttarakhand State Tax since 2025.
Q. Which department conducted the operation?
The Uttarakhand State Tax Department conducted the operation through its Special Investigation Branch.
Q. Which areas are being monitored?
The department said it is monitoring tourism-related businesses in Ramnagar, Nainital and nearby areas.
