IIT Coaching Fraud: CGST Commissionerate detects fraud worth more than Rs. 14 crores
The officers of Division VIII, Mumbai East CGST Commissionerate, appearing on explicit info, have found a novel mode of tax evasion within the tutoring sector. A private restricted business, M/s Rao Edusolutions Pvt. Ltd., working below the model title Rao IIT Academy, has been accused of collecting GST at 18% on tuition charges from its pupils while claiming irrelevant and exempt companies in returns submitted with the division. The tuition prices thus gathered are believed to have been misappropriated for the help of the business.
One of the corporate’s two executives was detained below Section 69 of the CGST Act, 2017 for violating Section 132(1). (d). The alleged escape is priced greater than Rs. 14 crores, rendering the crime cognizable and non-bailable below Section 132(1)(i) of the CGST Act. The accused has been held in judicial detention by the presiding Additional Metropolitan Magistrate for a term of 13 days.
The operation is part of efforts by CGST Mumbai Zone to swiftly detect new modes of GST fraud and stamp out the evaders.
