Top cryptocurrency provider in India raided by Tax

Crypto wallets and exchanges are platforms that help in the transaction of digital assets such as bitcoin.

New Delhi: Following the massive tax evasion of GST by cryptocurrency service provider WazirX, the Directorate General of GST Intelligence has come down heavily on cryptocurrency exchanges operating in the country, sources said.

“Around half a dozen offices of cryptocurrency service providers have been searched and large scale Goods and Services Tax (GST) evasion by DGGI has been detected,” sources told ANI.

Crypto wallets and exchanges are platforms where merchants and consumers can transact with digital assets such as Bitcoin, Ethereum, Ripple, etc.

According to sources, tax evasion of around Rs 70 crore has been detected during crackdown on cryptocurrency trading by Mumbai CGST and DGGI.

“DGGI is investigating Coinswitch Kuber by M/s Bitcifer Labs LLP, CoinDCX by M/s Neblio Technologies Pvt Ltd, BuyUcoin by M/s Block Technologies Pvt Ltd and Unocoin by M/s Unocoin Technologies Pvt Ltd,” the sources said.

Official sources further added, “They are providing facilitation intermediary services for the purchase and sale of crypto coins. These services attract GST at the rate of 18 per cent, which all of them have been avoiding.”

Another official source, who was part of the discovery, told ANI, “These service providers were charging a commission for facilitating involvement in the exchange of bitcoins, but were not paying GST tax. The transaction was intercepted by DGGI and they were confronted with evidence. It was proved that GST is not being paid.”

A top source told ANI that they paid Rs 30 crore and Rs 40 crore as GST, interest and penalty for non-compliance with the statutory provisions of the GST law. CBIC has recovered Rs 70 crore from cryptocurrency service providers including WazirX for violating GST laws.

GST Mumbai East Commissionerate of Mumbai Zone on Friday detected GST evasion of Rs 40.5 crore from cryptocurrency exchange WazirX and recovered Rs 49.20 crore in cash related to GST evasion, interest and penalty.

As claimed by CoinDCX their crypto app allows to buy bitcoin and other cryptocurrencies instantly in India and has over 7.5 million users and over 10 million downloads with 7 billion crypto purchased.

According to the website CoinSwitch Kuber trading platform has processed more than USD 5 billion, BuyUcoin based out of Delhi-NCR in India has over one million users and has done over USD 800 million turnover.

Unocoin is also a platform for trading bitcoin, ether, tether, crypto assets among other such platforms having offices in Bangalore that have processed more than 10 million according to their website.


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