GST tax evasion by Commercial Navratri Garba Organizers Sparks Controversy in Surat

Surat : A call for Goods and Services Tax (GST) collection from approximately 20 commercial Garba organizers in Surat has ignited a heated debate on the exorbitant entry fees charged by these organizers during the Navratri festival.

Social activist Darshan Naik has urged the GST department to take action against Garba event organizers who are reportedly raking in substantial revenues by indulging in tax evasion during Navratri celebrations.

The list of major commercial Garba organizers, including names like The Memories Event Company, G-Nine, Arihant Ramzat, Jhankar Navratri, and Apex Entertainment, was submitted by Naik, who highlighted the entry fees charged by these organizers, ranging from Rs 500 to Rs 1500 per Garba reveler. The demand for GST collection arises from the assertion that these organizers are effectively operating as commercial entities, profiting from Navratri celebrations, and yet not contributing to the tax revenue.

In a letter addressed to the SGST Commissioner in Surat, Darshan Naik underlined the original purpose of Navratri Garba as the preservation of Indian culture. However, it is becoming increasingly evident that Garba event organizers have transitioned from cultural preservation to commercial arrangements with financial gains taking precedence.

At these commercial Garba venues, an estimated 7,000 to 10,000 people attend daily, and organizers charge substantial entry fees of Rs 500 to Rs 1500. Additionally, they levy parking fees of Rs 70 for motorbikes and Rs 500 for cars. Food items and beverages are sold at inflated prices, further contributing to the significant revenues being generated during the Navratri season.

Naik asserts that these Garba organizers are accumulating crores of rupees over the course of Navratri. Moreover, fast-food stalls, snack counters, and cold-drink vendors within the Garba pandals charge customers more than the standard prices for their products. Cash transactions are prevalent in these arrangements.

Naik’s plea is directed at ensuring that tax evasion is not taking place, as he believes that commercial Garba organizers should be contributing 18% GST on their earnings. He is concerned that the GST department appears to be overlooking prominent commercial Garba organizers while targeting small traders and shopkeepers with notices, creating an unequal application of tax regulations.