17 Crypto Platforms Under Scanner For Alleged GST Evasion

SUMMARY

MoS for finance Pankaj Chaudhary said that INR 122.29 Cr has been recovered from the erring crypto platforms, including interest and penalty

WazirX parent Zanmai Labs owes the government INR 40.51 Cr while CoinDCX and its FIU-registered Indian entity have been booked for evading tax worth INR 26.63 Cr

The MoS also informed the Parliament that a total of 47 VDA service providers have registered as reporting entities with the finance ministry’s FIU-IND till date

The goods and services tax (GST) authorities have so far booked as many as 17 crypto exchanges for allegedly evading GST to the tune of INR 824.14 Cr.

In a written reply to the Lok Sabha, minister of state (MoS) for finance Pankaj Chaudhary said that GST dues (including interest and penalty) worth INR 122.29 Cr, have, however, been recovered from the crypto platforms.

Of the total INR 824 Cr tax evasion, crypto giant Binance’s subsidiary, Nest Services, alone accounts for 87%, or INR 722.43 Cr, while WazirX parent Zanmai Labs owes the government INR 40.51 Cr.

CoinDCX and its FIU-registered Indian entity, Neblio Technologies, have been booked for evading tax worth INR 26.63 Cr. On similar lines, CoinSwitch Kuber is under the scanner for GST evasion to the tune of INR 14.13 Cr and ZebPay is under the radar for evading GST worth INR 7 Cr.

Other crypto exchanges that have been booked by authorities include BuyUcoin, UnoCoin, Flipvolt Technologies, among others.

In his reply, the MoS also said that four “investors”, dealing in virtual assets, have so far been probed for evading GST worth INR 1.76 Cr. However, INR 2.4 Cr has been recovered from these “investors”.

Chaudhary also informed the Parliament that a total of 47 virtual digital asset (VDA) service providers have registered as reporting entities with the finance ministry’s Financial Intelligence Unit (FIU-IND) till date.

FIU oversees trade in VDAs and ensures crypto exchanges comply with the Prevention of Money Laundering Act (PMLA) and the VDA taxation framework. All crypto platforms have to mandatorily register as reporting entities to offer crypto trading services in India.

The GST liabilities are expected to further increase regulatory burden and costs for the crypto platforms as they look to cash in on the ongoing crypto boom.

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