Chandigarh’s high-end beauty industry has come under scrutiny after excise and central GST teams conducted surprise raids on more than a dozen top salons across Sectors 8, 9, 26, and 35. The action followed multiple complaints of alleged tax evasion.
Officials revealed that these salons, known for charging hefty amounts for services like haircuts, colouring, bridal packages, spa therapies, and makeup sessions—often running into lakhs—had been sidestepping the mandatory 18% GST. Instead of issuing bills, customers were frequently asked to make cash payments, leaving no official record of these transactions. Only the sale of beauty products appeared in their books, while the bulk of revenue from services remained hidden.
Investigators are now examining three years of financial returns and transaction records of these establishments. The probe has also uncovered that some salons used “discount schemes” as a cover to avoid generating bills, further facilitating tax evasion.
Particular attention is being given to a luxury salon in Sector 9, regarded as one of the most exclusive in the city. With daily sales reportedly worth lakhs, it is expected to be a major source of tax recovery.
Authorities suggested that more salons and beauty parlours could soon come under investigation. They also appealed to the public to insist on bills whenever availing beauty or wellness services, noting that proper billing not only supports government revenue but also protects consumer rights.
The raids mark a significant step in tightening compliance within the city’s booming beauty sector, where premium pricing has often outpaced transparency in financial reporting. With detailed audits underway, officials are confident that a considerable amount of unpaid tax will be recovered in the coming weeks.
