Karnataka: Commercial tax dept raids coaching classes in Vijayapura

The Belagavi enforcement wing of the state’s Commercial tax department on Thursday conducted raids in several prominent coaching classes in Vijayapura district, suspecting them of GST evasion. The department said it had “successfully unearthed suppression of turnover” by certain institutes in the district. “The officials [involved in the raid] have seized incriminating records and digital evidence,” said a statement.

Enforcement officials conducted simultaneous searches at the businesses and homes belonging to the institutes which provide medical and engineering entrance examination coaching facilities in Vijayapura. The investigation is still in progress.

The group of coaching institutes under suspicion have voluntarily deposited Rs 1 crore as GST, pending the final tally of the tax they owe.


The probe also found that the coaching institutes have not registered under the GST Act. “The department is in pursuit of bringing all such institutes of this sector under the GST net,” the statement said. Coaching institutes are charged GST at a rate of 18%.

Chief Minister Siddaramaiah recently told the commercial tax department to take strict action against tax evaders in cases of tax evasion, tax leakage and tax pilferage in the state. Karnataka’s commercial tax collection growth rate is at 19%, which is higher than the national rate of 15%, he said. This year, the department has a target of 24%.