The Mumbai CGST Commissionerate has discovered a new method of tax evasion of ₹14-crore in the academic coaching sector, an official said here on Saturday.
Following specific intel, the CGST Mumbai East Division VIII sleuths swooped on Rao Edusolutions Pvt. Ltd., known as 'Rao IIT Academy', which was suspected to be indulging in the tax frauds.
The Rao IIT Academy was reportedly collecting 18 per cent GST on tuition fees from its students but actually was declaring unrelated and exempt services in the returns filed with the department.
Tuition fees was misappropriated
The department apprehended that the tuition fees collected were misappropriated by the company and arrested one of two directors.
They were charged under CGST Act, 2017, Sec. 69 for violating provisions of Sec. 132(1)(d), and produced before a designated court which remanded them to 13 days custody.
Investigations so far have revealed that the suspected tax evasion was over ₹14 crore, making the offence cognisable and non-bailable as per the CGST Act.
The Rao IIT Academy imparts coaching to thousands of students aspiring for JEE, Medical-UG and other popular courses through its branches across Maharashtra, Gujarat, Uttar Pradesh, Bihar, Rajasthan and Delhi.
(With IANS inputs)
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)
