Nagpur: GST raid 3 popular driving schools over tax evasion of Rs 10 crore

Tejaswini Thote | Mar 18, 2020 15:22

The Directorate General of GST Intelligence (DGGI) Nagpur unit raided three popular motor driving schools for evading service tax and Goods and Services Tax of almost Rs 10 crore over the past five years. The officers of DGGI Nagpur unit, following a tip off, carried out the search operations at the offices of M/s Wazalwar Driving School Pvt Ltd at Shivaji Nagar, M/s Desai Driving School at Manish Nagar and at M/s Shree Driving School at Medical Square.

As per the officials, all the three entities despite providing driving lessons (that is considered a taxable service) to their students for almost 20 years didn’t register nor did they continue their registration with the service tax or GST department.

During their investigation, the DGGI also observed that only a few of the receipts were being accounted for whereas majority transactions were carried out in cash to evade taxes.

As per a report in TOI, “On preliminary inquiries, including analysis of the ‘kaccha’ receipts and registers recovered and seized during the search operations, it has been estimated that taxable value of over Rs10 crore has been suppressed by these entities in just the last five years involving service tax, and GST of approximately Rs1.86 crore. The department has also recorded statements of the proprietors and seized documents for scrutiny.”

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