The Enforcement Wing (South Zone) of the Commercial Taxes Department, Bengaluru, has conducted simultaneous inspections in over 20 locations in the central business district. It has also seized about 75 goods vehicles that evaded taxes in a month.
The department said on Tuesday in a statement that the raids were conducted in shops located in Chickpet, Avenue Road, Cottonpet, Balepet, and B V K Iyengar Road, targeting traders dealing in electrical and electronic goods, readymade garments, other textiles, automobiles, and handicraft items.
The department uncovered several instances of tax evasion where traders were selling goods without issuing invoices to customers, and imposed penalties under the GST Act. Additionally, officials exposed a network of traders who operated unregistered warehouses and engaged in illegal business activities without declaring them to the department, resulting in further penalties.
Investigations also revealed that traders were illegally transporting into Karnataka goods such as electrical and electronic items, textiles, garments, automobiles, and handicrafts, without proper invoicing and selling them within the state, thereby causing significant revenue loss to the exchequer.
The department’s intensive multidimensional inspections have brought to light a large-scale tax evasion network involving goods worth several crores of rupees, as per the statement.
The department also exposed several cases of tax evasion related to iron and steel, including TMT goods used in construction activities and metal scrap used in the production of TMT goods.
Over the past month, penalties for evading taxes were levied on about 75 goods vehicles involved in interstate trade.