New Delhi: The Directorate General of GST Intelligence (DGGI) has initiated action against cryptocurrency exchanges operating in the country following massive tax evasion of GST by cryptocurrency service providers WazirX.
“About half a dozen offices of cryptocurrency service providers have been searched and large-scale Goods and Services Tax (GST) evasion has been unearthed by DGGI,” said sources privy to the development.
Crypto wallets and exchanges are platforms where merchants and consumers can transact with digital assets such as Bitcoin, Ethereum, Ripple, etc.
Sources said tax evasion of around Rs 70 crore has been detected during crackdown on cryptocurrency trading by Mumbai Central Goods and Services Tax (CGST) and DGGI.
“DGGI is investigating CoinSwitch Kuber by M/s Bitsifer 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.,” ANI quoted sources as saying. Quoted said.
“They are providing facilitation intermediary services for the purchase and sale of crypto coins. These services attract a GST rate of 18 per cent, which all of them have been avoiding.
Another authoritative source, who was part of the discovery, said that these service providers were charging a commission for facilitating involvement in the exchange of bitcoins, but were not paying GST tax.
“These transactions were intercepted by the DGGI and they were presented with evidence that proved non-payment of GST,” the source said.
Another top source told ANI that they paid Rs 30 crore and Rs 40 crore as GST, interest and penalty for non-compliance of statutory provisions of the GST law.
The Central Board of Indirect Taxes and Customs (CBIC) has recovered Rs 70 crore from cryptocurrency service providers including WazirX for violating GST laws.
Earlier on Friday, GST Mumbai East Commissionerate, Mumbai Zone, detected GST evasion of Rs 40.5 crore from cryptocurrency exchange WazirX and recovered Rs 49.20 crore in cash related to GST evasion, interest and penalty.
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