Kerala's State GST Department has detected alleged tax evasion worth ₹7.56 crore in vehicle parking services at railway stations across the state, following a statewide enforcement operation conducted on 16 September 2026. The Chief Minister's Office disclosed the findings on Friday, 18 September, marking one of the more significant GST enforcement actions in the state's parking sector in recent memory.

How the Operation Unfolded

The GST Intelligence and Enforcement wing inspected 69 locations linked to 22 taxpayers providing parking services on railway premises across Kerala. Inspections covered main business premises, residences, and additional business locations. Investigators found that the turnover declared in GST returns was substantially lower than the actual revenue generated from parking services.

Preliminary findings indicate suppression of turnover worth ₹42 crore, with the resulting tax shortfall estimated at ₹7.56 crore. Investigators also detected the use of multiple QR codes to collect payments — a method that reportedly helped obscure actual transaction volumes. Transaction details for 13 taxpayers were extracted directly from software systems, while data for others was gathered from books, registers, and mobile phone chats.

Scope Set to Widen Beyond Railways

The current operation covers only railway station parking, but authorities have signalled that it is merely the first phase of a broader crackdown. The State GST Intelligence wing has already compiled details of more than 1,000 vehicle parking facilities operating at KSRTC premises, hospitals, shopping malls, and theatres across Kerala. Further inspections will be conducted at locations where tax evasion is suspected.

The State GST Commissioner stated that enforcement and investigation against establishments involved in tax evasion would be strengthened going forward. This suggests the railway parking sweep is a template for wider sector-level enforcement rather than a standalone action.

Government's Revenue Push

Chief Minister Pinarayi Vijayan — who also holds the Finance portfolio — is overseeing the state's revenue administration amid broader efforts to plug leakages and expand the tax base. The government has invited the public to report suspected tax evasion in the parking sector confidentially, with information accepted at inform.sgst@kerala.gov.in.

This comes as several Indian states have ramped up GST compliance drives, particularly targeting cash-heavy or QR-code-dependent sectors where under-reporting of turnover is structurally easier. Kerala's focus on high-footfall parking facilities — which handle large daily cash and digital inflows — fits that pattern.

What Comes Next

With the investigation still ongoing and more than 1,000 parking facilities already identified for scrutiny, the department is preparing to extend its tax-evasion hunt statewide. Operators at KSRTC terminals, hospitals, malls, and cinema complexes are expected to face inspections in the coming weeks.