60 GST registrations linked to Chinese national in Bengaluru found

The commercial Taxes department in Karnataka has unearthed 60 goods and services tax (GST) registrations linked to a Chinese national from Wuhan and seized Chinese goods worth Rs 4 crore from an undeclared warehouse in Bengaluru during a raid.

A total of 25,446 Chinese made electronic and Fast Moving Consumer Goods (FMCGs) were seized from the warehouse on Old Airport Road during the recent raids, a department press release said.

The man had obtained the premises on 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.

Most of the registrations were found irregular in filing of returns and payment of tax and a majority of firms either filed nil returns or did not file returns, the release said.

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 learnt 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 learnt that multiple registrations are being taken for 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.