Income Tax Department Turns the Heat on Restaurants: Inside the Nationwide Turnover Validation Drive
Per the CBDT press release of 9 March 2026, the Income Tax Department analysed transactional data of about 1.77 lakh F&B sector restaurants, surveyed 62 establishments across 46 cities in 22 States on 8 March 2026, and is sending phase-1 advisory communications to around 63,000 restaurants under the SAKSHAM NUDGE campaign asking them to file updated returns under Section 139(8A) before 31 March 2026. A practitioner's view of the aggregator/UPI/GST data triangulation, the Section 9(5) CGST treatment of restaurant services through ECOs, the legal machinery under Sections 148/148A/270A/271AAC, and what restaurant owners should do before a formal notice lands.
Sanjay Patel
@sanjay_tax
Tax Consultant
Tax Consultant | NRI Taxation & FEMA | Serving the Indian diaspora | Ahmedabad | 20 years experience.