Rs 7,00,00,00,00,00,000 and counting: How taxmen filtered 60,00,00,00,00,00,000 bytes biryani bill data to detect mother of all GST scams
A major GST evasion scam has been uncovered in India's restaurant sector. AI analysis of billing data revealed suppressed sales worth thousands of crores. The Income Tax Department's investigation found widespread manipulation of sales records. Th...

The probe examined billing transactions worth Rs 2.43 lakh crore between 2019–20 and 2025–26, making it one of the largest tax crackdowns ever in the restaurant sector.
Raid to revelation: How tax sleuths cracked the case
What began as routine searches in Hyderabad, Visakhapatnam and other cities in Telangana and Andhra Pradesh soon turned explosive. Investigators reportedly found billing software being used to conceal actual sales. The shocking clues prompted the Central Board of Direct Taxes (CBDT) to widen the probe across the country.The Income Tax Department’s Hyderabad unit then carried out a massive forensic deep dive into 60 terabytes of billing data linked to a software platform used by over one lakh restaurants nationwide — nearly 10% of India’s restaurant billing market.
Using advanced analytics and Generative AI tools, officials scanned records connected to 1.77 lakh eateries. The results were staggering: suppressed sales worth at least Rs 70,000 crore since 2019–20. Authorities are now working out the final tax dues and penalties, which could push the liability even higher.
Shocking numbers emerge from states
In Telangana and Andhra Pradesh alone, hidden sales totalled Rs 5,141 crore. Inspections of just 40 restaurants uncovered manipulation worth nearly Rs 400 crore — hinting at widespread fraud.
Officials also found that some restaurants didn’t delete records but simply under-reported their earnings in GST filings — a move seen as deliberate tax evasion.
Inside the ‘billing software trick’ used to dodge GST
Investigators revealed multiple tactics used to slash tax liability. Restaurants allegedly deleted cash invoices while keeping partial records, making revenues appear lower on paper. In some cases, billing data for entire periods — sometimes up to 30 days — was wiped clean before GST returns were filed.The probe examined billing transactions worth Rs 2.43 lakh crore between 2019–20 and 2025–26, making it one of the largest tax crackdowns ever in the restaurant sector.
With more billing platforms and restaurant chains now under scrutiny, authorities suspect the Rs 70,000 crore figure could be just the tip of a much larger iceberg.
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