Bengaluru’s central business districts witnessed sweeping raids by the Commercial Taxes Department’s Enforcement Wing (South Zone), uncovering a web of tax evasion across textiles, electronics, and iron-steel sectors. With over 20 commercial hubs raided and 75 vehicles seized, the crackdown signals Karnataka’s zero-tolerance stance on GST violations and interstate smuggling.
From Chickpet to Cottonpet: City-Wide Raids Expose Hidden Trade Networks
In a high-impact operation, the Enforcement Wing (South Zone) of the Commercial Taxes Department, Bengaluru, launched simultaneous raids across more than 20 major commercial locations, including Chickpet, Avenue Road, Cottonpet, Balepet, and B.V.K. Iyengar Road, unearthing a vast network of GST violations, unregistered warehouses, and illegal interstate goods movement.
Targeting traders in sectors like textiles, electronics, garments, automobiles, and handicrafts, the enforcement team found rampant evasion of tax through non-invoiced sales, undeclared inventory, and clandestine trade operations.
The department confirmed that goods worth crores were being sold without proper billing, directly violating GST norms. “Multiple traders failed to issue invoices and were penalized under GST provisions,” stated an official release. The raid comes at a time when Karnataka is stepping up enforcement to plug revenue leaks caused by shadow trade practices.
Underground Warehouses and Interstate Smuggling Under Scrutiny
Beyond unbilled sales, the raids uncovered unregistered warehouses, many of which housed substantial inventories never declared to the authorities. These shadow operations were part of a broader scheme to evade taxes by bypassing the formal supply chain, officials said.
Investigators also revealed widespread interstate smuggling of goods—particularly electrical appliances, metal scrap, garments, and TMT construction materials—into Karnataka without proper documentation or GST compliance. These goods were then sold locally, severely undermining the tax base.
Among the most damning findings: over the last 30 days, the department seized more than 75 transport vehiclesferrying undeclared goods across state lines. “These carriers were intercepted as part of a statewide surveillance drive,” the release noted, adding that penalties were immediately imposed on offending parties.
Zero Tolerance Policy Underway as Department Tightens Grip
The enforcement wing emphasized that the state has adopted a zero-tolerance approach toward tax evasion, and such massive inspections will now be routine.
Officials said that this operation was not a one-off but the beginning of a wider crackdown targeting trade malpracticein Karnataka’s busiest markets. “These evasion tactics are depriving the state of significant GST revenue and giving unfair advantage to non-compliant traders,” said a senior official involved in the operation.