The State Goods and Services Tax (SGST) department is cracking down heavily on coaching classes in Gujarat for not reporting the transactions correctly and evading tax. It is believed that the owners and operators of coaching classes have resorted to underhanded means to avoid paying taxes.
According to the sources, classes have under reported fees taken from the students in their GST filings. There have been discrepancies in transactions as many were done in cash. It is also believed that the classes are accepting fees and paid faculty salaries sin cash as well.
In the latest, the SGST has raided three coaching classes in Ahmedabad allegedly for evading payment of taxes. The classes include branches of Ahmedabad-based World Inbox Academy. According to sources, these classes had unaccounted transactions worth Rs18 crore, amounting to a tax evasion of more than Rs3 crore.
This news comes as just in the last two days the department has raided 13 premises of coaching classes across 48 locations in the state, including Ahmedabad, Bhavnagar, Jamnagar, Junagad, Rajkot and Surat. More such raids are expected and many coaching centres will be targeted.
It is believed that the SGST officials detected tax evasion through market intelligence and thorough checks and tracking of data analysis software.