Mumbai, April 1 The Mumbai CGST Commissionerate has stumbled upon a new modus operandi of tax evasion of Rs 14-crore from 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.
The department apprehended that the tuition fees collected was misappropriated by the company and arrested 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 Rs 14 crore, making the offence cognisable and non-bailable as per the CGST Act.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor