Commercial Taxes Dept. Cracks Down on GST Evasion by Coaching Institutes

Commercial Taxes Department - Cracks Down on GST Evasion - GST Evasion - Cracks Down - Commercial Taxes - Coaching Institutes - taxscan

The Enforcement Wing of Karnataka’s Commercial Taxes Department in Belagavi has uncovered a significant network operating numerous coaching institutes in the Vijayapura district, suspected of evading Goods and Services Tax (GST).

Enforcement authorities executed coordinated search operations, simultaneously targeting both the business and residential premises associated with the coaching institutes belonging to this particular group. The department has decided not to reveal the name of the group involved.

Additionally, they extended their search efforts to encompass other commercial coaching facilities situated within the district. This synchronized and comprehensive approach was undertaken as part of their broader investigation into potential tax evasion activities within the coaching industry in the district.

“The officers seized incriminating records and digital evidence. As a result of the search operation, it is suspected that a substantial volume of turnover has been suppressed, and tax has been evaded. They have voluntarily deposited ₹1 crore in GST pending final quantification of turnover and tax,” said C. Shikha, Commissioner of Commercial Taxes (Karnataka).

Coaching institutions are mandated to remit a GST rate of 18%. According to the department, they are actively working towards the inclusion of all such institutions within the coaching sector under the GST framework.

The department is taking a proactive approach in modernizing its operations through the adoption of e-governance practices. In doing so, it has become a pioneer in leveraging advanced software analytical tools to identify and combat fraudulent activities and instances of tax evasion.

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