Crypto Exchanges Face GST Evasion Crackdown; Significant Recoveries Highlighted

The Indian government has revealed significant GST evasion cases against 17 cryptocurrency exchanges, including notable names like WazirX and CoinDCX, totalling Rs 824.14 crore. The authorities have recovered Rs 122.29 crore through taxes, penalties, and interest. Additionally, virtual asset investors and service providers are under scrutiny.

In a recent revelation, Indian GST authorities have booked a colossal Rs 722.43 crore tax evasion case against the cryptocurrency exchange Nest Services Ltd, affiliated with Binance Group, as informed to Parliament on Monday.

Overall, 17 cryptocurrency exchanges have been charged with evading a total of Rs 824.14 crore in GST. The government has managed to recover Rs 122.29 crore in connection with these cases, as stated by the Minister of State for Finance, Pankaj Chaudhary, in a written communication to the Lok Sabha.

Furthermore, Central GST formations uncovered Rs 40.51 crore in GST evasion by Zanmai Labs Pvt (WAZIRX), Rs 16.84 crore by CoinDCX, and Rs 14.13 crore by CoinSwitch Kuber. The investigation also extends to virtual digital asset investors, where Rs 1.76 crore evasion was identified, and Rs 2.40 crore has been recuperated through taxes, penalties, and interest.

(With inputs from agencies.)