The DGGI is cracking down on crypto exchanges, a tax evasion of Rs 70 cr detected: report

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After the massive tax evasion of the GST by cryptocurrency service providers WazirX, the GST Intelligence Branch took a heavy look at cryptocurrency exchanges operating in the country, sources said.

“About half a dozen offices of cryptocurrency service providers were raided and a massive goods and services tax (GST) evasion was detected by the DGGI,” sources told ANI . The crypto wallet and exchange are platforms on which traders and consumers can transact with digital assets like Bitcoin, Ethereum, Ripple, etc.

According to sources, around Rs 70 crore of tax evasion was detected during the crackdown on cryptocurrency trading by Mumbai CGST and DGGI. “DGGI Investigates Coinswitch Kuber by M / s Bitcipher Labs LLP, CoinDCX by M / s Neblio Technologies PVT. LTD., BuyUCoin by M / SI Block Technologies Pvt. LTD. And Unocoin by M / s Unocoin Technologies Pvt. LTD, sources said.

Official sources further stated, “They provide intermediary facilitation services for the buying and selling of crypto coins. These services are subject to an 18% GST duty rate which all have bypassed.” Another official source, who was part of this research, told ANI: “These service providers were charging a commission for their facilitation of the bitcoin exchange but did not pay the GST tax. These transactions were intercepted by the DGGI and they were confronted with evidence. which proved the non-payment of the GST. “

A prominent source told ANI that they paid Rs 30 crore and Rs 40 crore in GST, interest and penalties for failing to comply with legal provisions of the GST law. For breaking GST laws, CBIC recovered Rs 70 crore from cryptocurrency service providers including WazirX. The GST Mumbai East police station in the Mumbai area on Friday detected a GST breakout of Rs 40.5 crore from the WazirX cryptocurrency exchange and recovered Rs 49.20 crore in cash relating to the GST evaded, interest and penalties.

According to the claim made to CoinDCX, their crypto app allows instant purchase of bitcoin and other cryptocurrencies in India and has over 7.5 million users and over one crore of downloads with Rs 7 billion of cryptos purchased. According to the website where the CoinSwitch Kuber trading platform has processed more than $ 5 billion, Delhi-NCR-based BuyUcoin in India has over one million users and has traded over $ 800 million.

Unocoin is also a platform for trading Bitcoin, Ether, Tether, among other crypto asset platforms. It has offices in Bangalore which have processed over 10 million according to their website.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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