Crypto Quill

The Indian government has uncovered goods and services tax (GST) evasion amounting to INR 824.14 crore by 17 cryptocurrency exchanges. Minister of State for Finance Pankaj Chaudhary revealed this information in a written reply to Parliament on December 3, 2024.

GST Evasion by Leading Crypto Players

The investigation found that Binance, WazirX, CoinDCX, and CoinSwitch Kuber were among the major platforms involved in the tax evasion. The Binance group, under its subsidiary Nest Services Ltd, alone accounted for INR 722.43 crore of the total amount.

Despite the large sum of evaded taxes, the government has managed to recover INR 122.29 crore so far, including penalties and interest.

Other notable amounts include INR 40.51 crore from Zanmai Labs Pvt, the parent company of WazirX, INR 16.84 crore from CoinDCX, and INR 14.13 crore from CoinSwitch Kuber.

Additional Investigations into Virtual Asset Investors

In addition to the 17 crypto exchanges, central GST authorities have also investigated four investors dealing in virtual digital assets. These investigations revealed an additional GST evasion of INR 1.76 crore, though the government has already recovered INR 2.4 crore in taxes, penalties, and interest.

Minister Chaudhary also informed Parliament that 47 Virtual Digital Asset Service Providers (VDA SPs) have registered as Reporting Entities with the Financial Intelligence Unit-India under the Prevention of Money Laundering Act (PMLA) as of now.

Leo Frost

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