According to an official, the CGST Mumbai zone has discovered a new scheme to evade taxes worth Rs 14 crore in the academic coaching industry.
Officers from Division-VIII, Mumbai East CGST Commissionerate, conducted the raid on Rao Edusolutions Pvt. Ltd., doing business as Rao IIT Academy, based on specific intelligence.
The coaching academy is suspected of charging students tuition fees with GST at the rate of 18% while declaring unrelated and exempt services in the department's filings.
According to the official, two directors have been detained in connection with the alleged misappropriation of tuition payments in the company's favor.
They were brought before a designated court and sentenced to 13 days in custody after being accused under Section 69 of the CGST Act, 2017, of breaking Section 132(1)(rules. )'s
"Due to a violation of Section 132(1), one of the company's two directors was detained under Section 69 of the CGST Act, 2017. (d). According to Section 132(1)(i) of the CGST Act, the alleged evasion amounts to more than Rs. 14 crores, making the offense cognizable and non-bailable "added the official.
