The enforcement drive identifies an estimated tax impact exceeding Rs30 million, with show-cause notices issued to businesses over sales tax compliance violations.
The Regional Tax Office (RTO) Hyderabad has intercepted more than 30 vehicles transporting goods without digitally generated invoices during a three-day enforcement drive aimed at improving sales tax compliance and preventing tax evasion.
The operation was conducted within the territorial jurisdiction of RTO Hyderabad under the directions of the Chief Commissioner Inland Revenue. It was launched in pursuance of Sales Tax General Order (STGO) No. 1(215)ST-L&P/2026/108756-R, dated September 28, 2026.
During the enforcement activity, officials intercepted vehicles carrying goods belonging to taxpayers registered within the jurisdiction of RTO Hyderabad. These included businesses associated with cotton factories and other commercial establishments.
The vehicles were stopped after authorities found that the goods being transported were not accompanied by digitally generated invoices, as required under the applicable digital invoicing framework.
Officials recorded details of the goods, their estimated values and the corresponding tax implications before allowing the vehicles to proceed. The information collected during the inspections was subsequently used to initiate legal proceedings against the concerned taxpayers.
Following the interceptions, show-cause notices were issued to the relevant businesses under Section 11E of the Sales Tax Act, 1990, seeking explanations regarding the identified non-compliance. Tax impact exceeds Rs30 million
According to the details of the enforcement drive, more than 30 vehicles were intercepted within just three days. The cases involved an estimated tax impact exceeding Rs30 million, highlighting the potential revenue implications of transactions conducted without digitally generated invoices.
The action forms part of the tax authorities’ efforts to improve documentation of taxable transactions and ensure that businesses comply with digital invoicing requirements.
Digital invoicing is intended to strengthen transaction monitoring, improve transparency and enable tax authorities to track the movement of taxable goods. The interception of vehicles carrying goods without the required invoices also allows officials to identify potential gaps in sales tax reporting.
RTO Hyderabad said the initiative reflects its commitment to strengthening digital invoicing compliance and preventing sales tax evasion across its jurisdiction.
The enforcement drive also signals increased monitoring of commercial transportation and business activities, particularly where goods are moved without the required digital documentation.