The Enforcement Branch (South Zone) of the Commercial Taxes Department conducted a massive tax enforcement drive in several tax evasion-prone sectors in Bengaluru and unearthed widespread GST violations amounting to nearly ₹100 crore in suppressed turnover.
Coordinated inspections targeted sectors such as electronics, auto parts, gift items, dry fruits and confectionery, paints and hardware, iron and steel and cement. The operations were concentrated in busy business centers of Bengaluru including Chickpet, SP Road, Avenue Road, JC Road, BVK Iyengar Road and surrounding areas.
International goods without invoices
Initial findings revealed that several traders were taking goods – mainly electronics, auto parts, gift items and dry fruits – from NCR/Delhi without valid tax invoices and transporting quantities far in excess of those declared.
Officials said this allowed local traders to sell goods without issuing invoices, leading to systematic suppression of turnover and GST evasion.
False accounting in iron, steel and cement
In the iron and steel, hardware and cement sectors, officials found widespread invoicing without corresponding supply of goods. Investigators found that goods were diverted directly to end consumers, especially individual house builders, while fictitious invoices were issued to registered firms to facilitate illegal Input Tax Credit (ITC) claims.
Strict measures have been initiated against both invoice issuers and recipients.
Unregistered companies were flagged
The drive also found several business entities operating without mandatory GST registration despite crossing the turnover threshold of ₹40 lakh. Such businesses have been warned to seek registration immediately to avoid penalties.
Railway surveillance intensified
The department has strengthened monitoring of movement of goods through Bengaluru 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 such as arecanut, pan masala, meal and dry fruits remain under strict surveillance, the ministry said.
Scrap transporters intercepted
More than 75 vehicles transporting large quantities of scrap metal across state borders without proper invoices were detained. Fines totaling ₹2.5 million have already been collected for various violations.
More than 500 checks in 10 days
In the last 10 days, the Enforcement Branch, headed by Kanishka, Additional Commissioner of Commercial Taxes (Enforcement), has conducted more than 500 intensive checks in the south zone, unearthing widespread tax evasion practices. Document verification, data analysis and detailed investigation are underway and legal proceedings under CGST/KGST laws will follow, the statement added.
Published – 28 Nov 2025 20:01 IST
