The Enforcement Wing (South Zone) of the Commercial Taxes Department has carried out a massive tax enforcement drive across multiple evasion-prone sectors in Bengaluru, uncovering large-scale GST violations amounting to nearly ₹100 crore in suppressed turnover.
The coordinated inspections targeted sectors such as electronics, automobile spares, gift articles, dry fruits and confectionery, paints and hardware, iron and steel, and cement. The operations were concentrated in Bengaluru’s busy commercial hubs including Chickpet, S.P. Road, Avenue Road, J.C. Road, B.V.K. Iyengar Road, and surrounding areas.
Inter-State goods without invoices
Initial findings revealed that several traders were sourcing goods—especially electronics, auto parts, gift items, and dry fruits—from NCR/Delhi without valid tax invoices, and were transporting quantities far exceeding those declared.
Officials said this allowed local traders to sell goods without issuing invoices, resulting in systematic suppression of turnover and GST evasion.
Fake billing in Iron, Steel & Cement
In the iron and steel, hardware, and cement sectors, the officials detected widespread issuance of invoices without corresponding supply of goods. Investigators found that goods were diverted directly to end-consumers, particularly those constructing individual houses, while fictitious invoices were issued to registered firms to facilitate illegal Input Tax Credit (ITC) claims.
Strict action has been initiated against both invoice issuers and beneficiaries.
Unregistered businesses flagged
The drive also found several business entities operating without mandatory GST registration despite crossing the ₹ 40-lakh turnover threshold. Such businesses have been warned to obtain registration immediately to avoid penalties.
Railway surveillance intensified
The department has stepped up monitoring the movement of goods through Bengaluru’s railway stations. Nearly 1,000 bags of gutkha and pan masala were seized at Yeshwantpur Railway Station for being transported without valid documentation or proof of GST payment. High-risk commodities like arecanut, pan masala, scrap, and dry fruits remain under strict vigil, the department said.
Scrap transporters intercepted
More than 75 vehicles transporting large quantities of scrap across State borders without proper invoices were intercepted. Penalties totalling ₹2.5 crore have already been collected for various violations.
Over 500 inspections in 10 days
Over the last 10 days, the Enforcement Wing headed by Kanishka, Additional Commissioner of Commercial Taxes (Enforcement), South Zone, conducted more than 500 intensive inspections, exposing widespread tax evasion practices. Document verification, data analysis, and detailed investigations were ongoing, and legal proceedings under the CGST/KGST Acts would follow, a statement added.
