The Commercial Tax Department in Karnataka has unearthed 60 goods and services tax (GST) registrations linked to a Chinese national from Wuhan and seized Chinese goods worth INR 4 crore from an undeclared warehouse in Bengaluru during a raid.
The tax department officials found 25,446 China-made electronic and fast-moving consumer goods worth INR 4 crore stored in the warehouse which was not declared to the tax authorities.
The man had obtained the premises on a lease, and over 60 registrations had been made, both under central and state jurisdictions of the GST Act, in the name of a number of persons for online trading of Chinese made goods.
“The registration data showed that one business was registered in 2017-18, 43 in 2018-19, 14 in 2019-20 and two in 2020-21,” the department said.
Most of the 60 firms were private limited companies and 24 persons were interchangeably directors in 58 firms.
During the raid, neither the Chinese national nor any of the other 59 registered taxable persons were available at the premises and none came forward to participate in the proceedings in spite of sufficient time being provided, the department said.
“It is learned that the Chinese national is operating the business from Wuhan City since January 2020 with the assistance of some of his agents or employees in Bengaluru. It is also learned that multiple registrations are being taken for a better rating on E-commerce platforms,” Commissioner of Commercial Taxes M S Srikar said in the release.
The warehouse has been sealed and an investigation initiated to ascertain the genuineness of the existence of all 59 registered persons, their transaction, and tax compliance, he said.
