After massive tax evasion at WazirX (one of the largest cryptocurrency exchanges) came to light, the Directorate General of GST Intelligence, (DGGI), took action against crypto exchanges throughout the country. News agency ANI reported quoting source.
Approximately half a dozen offices were searched by DGGI during the crackdown. Massive Goods and Service Tax (GST), evasions were discovered.
During the crackdown, the DGGI in Mumbai and the Mumbai CGST reportedly found tax evasions amounting to Rs 70 crore.
Sources informed ANI that the DGGI was investigating Coinswitch Kuber (by M/s Bitcipher Labors LLP), CoinDCX (by M/s Nebilo Technologies Pvt Ltd), BuyUCoin (by M/s I Block Technologies Pvt Ltd) and Unocoin (“by M/s Unocoin Technologies Pvt Ltd.”
Official Sources Stated
Official sources stated that they were providing intermediary facilitation services for the purchase and sale of crypto coins. These services are subject to GST at 18 percent, which they have all been evading.
Another source who was part this search said that the service providers charged a commission to facilitate bitcoin exchanges, but did not pay GST tax. DGGI intercepted these transactions and presented evidence that showed non-payment.
According to reports, they paid Rs 30 crore and R 40 crore in GST, interest, and a penalty for not complying with the statutory provisions under GST law.
CBIC has recovered Rs 70 Crore from cryptocurrency service providers, including WazirX, for violating GST laws.