IT and GST departments uncover Rs 100-crore tax evasion network in massive citywide raids

Bengaluru : In one of the biggest coordinated enforcement drives in recent months, officials of the Income Tax (IT) Department and the Goods and Services Tax (GST) authorities have unearthed over Rs 100 crore worth of undisclosed transactions during surprise raids conducted across multiple commercial hubs of Bengaluru.

The joint crackdown, carried out over the past 15 days, covered more than 500 locations, including business establishments in Chickpet, Avenue Road, BVK Road, JC Road, and SP Road — areas known for dense trading activity. Officials said the raids exposed a “deep-rooted tax evasion network” cutting across several sectors.

According to sources, businesses dealing in electronics, auto spare parts, gift items, dry fruits, hardware, steel, cement, and scrap material were among those found violating tax norms. The investigation revealed widespread evasion practices, including manipulation of purchase and sales records, use of fake invoices, and complete avoidance of GST registration despite large turnovers.

Key violations detected

• Purchase of goods without any tax invoice
• Actual purchases far exceeding the bills recorded
• Sale of goods without issuing bills
• Fake invoice rackets used by hardware, steel and cement traders
• Bogus billing system created to help contractors claim illegal Input Tax Credit (ITC)
• Businesses with annual turnover above Rs 40 lakh operating without mandatory GST registration
• Seizure of 1,000 bags of gutka and pan masala at Yeshwanthpur Railway Station, all transported without documents
• 75 vehicles carrying iron scrap without valid invoices detained

Officials confirmed that the raids were triggered by credible inputs on large-scale invoice manipulation and unregistered trade operations. “The quantum of evasion clearly indicates a coordinated attempt to defraud the exchequer,” sources said.

The crackdown is part of a broader effort by central enforcement agencies to curb tax leakage in high-volume markets. Several traders are now under scrutiny, and authorities are examining seized documents, digital records and transport logs to assess the full extent of the fraud.

Legal proceedings have been initiated against businesses found guilty of evasion. More notices are expected as the investigation progresses.

Authorities indicated that further rounds of inspections are likely in Bengaluru and other districts as part of a sustained operation against GST and IT fraud.

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