IIT coaching industry fraud: Mumbai’s Central Goods and Services Tax (CGST) Commissionerate has discovered a new way of tax evasion by a prominent IIT coaching centre in the city. A private limited company, Rao Edusolutions Pvt. Ltd, is alleged to have committed a tax evasion of Rs. 14 crore.
The company, operating under the brand name Rao IIT Academy, has been suspected of collecting Goods and Services Tax (GST) at 18 per cent on the tuition fees from its students, but declared unrelated and exempt services in the returns filed with the tax department.
Tuition fees thus collected are 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 the CGST Act, 2017, for contravening the provisions of Section 132(1)(d).
The suspected evasion is upwards of Rs. 14 crore, therefore, the offence is cognizable and non-bailable under Section 132(1)(i) of the CGST Act.
The accused has been remanded to judicial custody for a period of 13 days by the Duty Additional Metropolitan Magistrate.
Through its branches in Maharashtra, Gujarat, Uttar Pradesh, Bihar, Rajasthan, and Delhi, the Rao IIT Academy trains thousands of students for JEE, Medical-UG, and other popular courses.
Catch latest auto sales updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
