Owners of shops and godowns in the busy commercial localities in and around Chickpet were in for a shock on Thursday as over 100 officials and 125 other staff from the Department of Commercial Taxes conducted simultaneous raids on over 100 businesses in the area.
According to the officials, the raids were conducted following a tip-off from reliable sources, and close to 90% of the businesses raided were undeclared.
“This investigation has been initiated, based on the credible information that some of the businesses located in and around this area are indulging in accumulating unaccounted stocks in undisclosed godowns and selling them without issuing tax invoices which results in causing loss to the government exchequer,” a statement by the department said.
Speaking to DH, Shikha C, Commissioner of Commercial Taxes, pointed out that the move was crucial given the upcoming festive season.
“It is a timely move before the festival season. This will prevent the sellers from selling goods without invoices during the festive shopping boom,” she said.
The majority of the businesses that were raided were involved in the trading of textiles, readymade garments, electrical items, and household articles.
During the raids, officials also imposed penalties on a few businesses for non-compliance with display requirements of GST-related information, such as the absence of signboards and GST registration certificates at their business premises.
In a few other cases, the officials have seized documents, and the department is scrutinising the financial records and other evidence to ascertain the quantum of tax suppression.
Published 05 October 2023, 21:22 IST