IIT Coaching Fraud: CGST Commissionerate detects fraud worth more than Rs. 14 crores

The officials of Division VIII, Mumbai East CGST Commissionerate, acting on particular information, have discovered a novel mode of tax evasion in the tutoring sector. A private limited business, M/s Rao Edusolutions Pvt. Ltd., operating under the brand name Rao IIT Academy, has been accused of collecting GST at 18% on tuition fees from its pupils while claiming irrelevant and exempt services in returns submitted with the department. The tuition costs thus gathered are believed to have been misappropriated in support of the business.

One of the company’s two executives was detained under Section 69 of the CGST Act, 2017 for violating Section 132(1).(d). The alleged escape is worth more than Rs. 14 crores, rendering the crime cognizable and non-bailable under 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 a part of efforts by CGST Mumbai Zone to swiftly detect new modes of GST fraud and stamp out the evaders.