Acting upon specific intelligence, the officers of Division – VIII, Mumbai East CGST Commissionerate have detected a new modus of tax evasion in the coaching sector. A private limited company M/s Rao Edusolutions Pvt. Ltd., operating under the brand name Rao IIT Academy, has been suspected of collecting GST at 18% on the tuition fees from its students, but declaring unrelated and exempt services in the returns filed with the department. The tuition fees thus collected is believed to have been misappropriated in favour of the company.
GST collected from students misappropriated
IIT coaching industry fraud worth more than Rs. 14 crores unearthed
GST collected from students misappropriated
Acting upon specific intelligence, the officers of Division – VIII, Mumbai East CGST Commissionerate have detected a new modus of tax evasion in the coaching sector. A private limited company M/s Rao Edusolutions Pvt. Ltd., operating under the brand name Rao IIT Academy, has been suspected of collecting GST at 18% on the tuition fees from its students, but declaring unrelated and exempt services in the returns filed with the department. The tuition fees thus collected is believed to have been misappropriated in favour of the company.
One of the two directors of the company has been arrested under Section 69 of CGST Act, 2017 for contravening provisions of Section 132(1)(d). The suspected evasion is upwards of Rs. 14 crores, making the offence cognizable and non-bailable under Section 132(1)(i) of CGST Act. The accused has been remanded to judicial custody for a period of 13 days by the duty Additional Metropolitan Magistrate.
The operation is a part of efforts by CGST Mumbai Zone to swiftly detect new modes of GST fraud and stamp out the evaders.