India’s General Directorate for GST Intelligence (DGGI) reportedly raided major cryptocurrency exchanges on Saturday. Their offices were searched and “massive tax evasion on goods and services (GST) was found by the DGGI”.
Tax authorities say cryptocurrency exchanges have bypassed the GST tax
India’s General Directorate for GST Intelligence (DGGI) reportedly raided major cryptocurrency exchanges across the country on Saturday. Citing official sources, the ANI news agency said:
About half a dozen offices of cryptocurrency service providers have been searched and the DGGI has uncovered massive tax evasion (GST).
According to the sources, the authorities are investigating Coinswitch Kuber (Bitcipher Labs), Coindcx (Neblio Technologies), Buyucoin (Iblock Technologies) and Unocoin (Unocoin Technologies). The raid exposed approximately 70 billion rupees ($ 9.4 million) in tax evasion, the publication said.
The raid followed the discovery of a major GST tax evasion of Rs 40.5 crore by the Wazirx cryptocurrency exchange on Friday. The authorities have subsequently recovered Rs.49.20 billion in cash from the exchange in relation to evaded GST, interest and penalties.
Noting that cryptocurrency exchanges charge a commission to make it easier to buy and sell cryptocurrencies, official sources emphasized:
These services attract an 18% GST tariff that has all escaped.
Another official source involved in the search told the publication, “These transactions were intercepted by the DGGI and 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 a penalty for failing to comply with the legal requirements of the GST Act, the publication said. In addition, the Central Board of Indirect Taxes and Customs (CBIC) has received back 70 billion rupees from them.
What do you think of Indian authorities searching crypto exchanges for tax evasion? Let us know in the comment section below.
Kevin Helms
Kevin, a student of Austrian economics, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.
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