The Enforcement Wing (South Zone) of the Commercial Taxes Department has unearthed widespread GST evasion nearing Rs 100 crore during an intensive tax enforcement drive across Bengaluru's major commercial markets. The large-scale operation targeted multiple evasion-prone sectors and exposed deep-rooted practices of suppressed turnover, fake billing, and unregistered businesses.
Inspections Across Bengaluru's Busy Trade Hubs
Over the past 10 days, officials carried out more than 500 coordinated inspections across Chickpet, S.P. Road, Avenue Road, J.C. Road, B.V.K. Iyengar Road, and adjoining areas. The crackdown focused on sectors with historically high tax-evasion risk, including:
- Electronics
- Automobile spares
- Gift articles and novelty items
- Dry fruits and confectionery
- Hardware, paints, iron, steel and cement
The drive was headed by Kanishka, Additional Commissioner of Commercial Taxes (Enforcement), South Zone.
Inter-State Goods Transported Without Invoices
Initial findings show that several traders sourced goods, particularly electronics, auto parts, gift items and dry fruits from NCR/Delhi without valid tax invoices. Officials discovered that the quantities shipped were far greater than what was declared.
This allowed traders to sell goods without issuing invoices, leading to deliberate suppression of turnover and substantial GST revenue loss.
Fake Billing Racket in Iron, Steel & Cement Sectors
A major part of the operation uncovered extensive fake billing practices in the iron, steel, hardware, and cement supply chain. Enforcement officials found:
- Traders issuing invoices without the actual supply of goods
- Goods being diverted directly to end-consumers, constructing houses
- Fraudulent invoices are being issued to registered firms to facilitate illegal Input Tax Credit (ITC) claims
The department has launched strict action against both the issuers of bogus invoices and the beneficiaries availing illegal ITC.
Unregistered Businesses Identified
The drive also flagged several businesses operating without mandatory GST registration despite crossing the Rs 40 lakh turnover threshold. These entities have been instructed to register immediately or face penalties and prosecution.
Railway Goods Under Tight Surveillance
Enforcement teams intensified monitoring at Bengaluru's railway stations, especially Yeshwantpur, where nearly 1,000 bags of gutkha and pan masala were seized for being transported without documentation or proof of GST payment.
High-risk commodities under close watch include:
- Arecanut
- Pan masala
- Scrap
- Dry fruits
Scrap Transporters Intercepted
The department intercepted more than 75 vehicles carrying large quantities of scrap across state borders without invoices. Penalties worth Rs 2.5 crore have been collected so far for violations across sectors.
Data Analysis and Legal Action Underway
Authorities stated that document verification and data analysis are ongoing. Based on the findings, legal proceedings under the CGST/KGST Acts will follow against traders involved in evasion.
The enforcement wing emphasised that such drives will continue to safeguard revenue and strengthen compliance in Bengaluru's high-volume markets.
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