Wednesday, January 19, 2022
HomeCrypto NewsIndian Authorities Take Over Cryptocurrency Exchanges to Avoid Tax Evasion

Indian Authorities Take Over Cryptocurrency Exchanges to Avoid Tax Evasion

India’s Directorate General of GST Intelligence, (DGGI), reportedly raided major cryptocurrency trading platforms on Saturday. The DGGI searched their offices and found “massive goods-and-service tax (GST), evasion”.

Tax authorities claim that cryptocurrency exchanges have been evading GST tax
India’s Directorate General of GST Intelligence, (DGGI), reportedly raided several cryptocurrency exchanges in the country on Saturday. According to official sources, ANI news agency reported:

DGGI has searched around half a dozen offices of cryptocurrency service provider companies and found massive goods and service tax (GST ) evasion.

Sources claim that authorities are looking into Coinswitch Kuber, Bitcipher Labs, Coindcx(Neblio Technologies), Buyucoin and Unocoin Technologies. According to the publication, tax evasion has been exposed in excess of Rs 70 crore ($9.4million).

This raid was prompted by Friday’s discovery of a significant GST tax evasion amounting to Rs 5 million by cryptocurrency exchange Wazirx. Following the raid, Rs 49. was recovered by the authorities. 20 millions in cash related to GST evaded and interest from the exchange.

Official sources pointed out that cryptocurrency exchanges are charged a commission to facilitate the selling and buying of cryptocurrencies.

These services are subject to the 18% GST rate of tax, which has been evaded by all.

Another source who was part the search told the publication that DGGI intercepted the transactions and presented evidence that showed non-payment.

According to the publication, crypto exchanges paid Rs 30 million and Rs 40 lakh as GST, interest and penalty for not complying with the statutory provisions under GST law. The publication also states that the Central Board of Indirect Taxes and Customs has recovered Rs million from them.

What do you think of Indian authorities raiding crypto-exchanges to tax evasion? Comment below to let us know your thoughts.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since then. His interests include Bitcoin security, open source systems, network effects, and the intersection of cryptography and economics.

Image Credits: Shutterstock. Pixabay. Wiki Commons.

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