India’s GST Intelligence Directorate (DGGI) reportedly raided major cryptocurrency exchanges on Saturday. Their offices were raided and “a massive goods and services tax (GST) fraud was detected by the DGGI”.
Tax authorities claim cryptocurrency exchanges escaped GST tax
India’s GST Intelligence Directorate (DGGI) reportedly raided major cryptocurrency exchanges across the country on Saturday. Citing official sources, the ANI news agency detailed:
Half a dozen offices of cryptocurrency service providers were raided and a massive goods and services tax (GST) evasion was detected by the DGGI.
According to the sources, authorities are investigating Coinswitch Kuber (Bitcipher Labs), Coindcx (Neblio Technologies), Buyucoin (Iblock Technologies) and Unocoin (Unocoin Technologies). The crackdown uncovered tax evasion worth around Rs 70 crore ($ 9.4 million), according to the publication.
The raid followed the discovery of a major Rs 40.5 crore GST tax evasion by the Wazirx cryptocurrency exchange on Friday. Authorities then recovered Rs 49.20 crore in cash relating to the evaded GST, interest and penalties from the exchange.
Noting that cryptocurrency exchanges charge a commission to facilitate the buying and selling of cryptocurrencies, official sources pointed out:
These services are subject to an 18% GST rate which everyone has escaped.
Another official source, who was part of the research, told the publication: “These transactions were intercepted by the DGGI and they were confronted with evidence proving the non-payment of the GST.”
Crypto exchanges subsequently paid Rs 30 crore and Rs 40 crore as GST, interest and penalties for failing to comply with the legal provisions of the GST law, according to the publication. In addition, the Central Council of Indirect Taxes and Customs (CBIC) recovered 70 crore rupees from them.
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