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According to reports, the Directorate General of Goods and Services Tax Intelligence (DGGI) of India raided major cryptocurrency exchanges on Saturday. Their offices were searched and “DGGI discovered large-scale goods and services tax (GST) tax evasion.”
Tax authorities say cryptocurrency exchanges have been evading consumption tax
According to reports, the Directorate General of Goods and Services Tax Intelligence (DGGI) of India raided major cryptocurrency exchanges across the country on Saturday. ANI News Agency quoted official sources to explain in detail:
DGGI has searched the offices of about six cryptocurrency service providers and discovered large-scale goods and services tax (GST) evasion.
According to sources, the authorities are investigating Coinswitch Kuber (Bitcipher Labs), Coindcx (Neblio Technologies), Buyucoin (Iblock Technologies) and Unocoin (Unocoin Technologies). The publication stated that the crackdown uncovered tax evasion worth approximately 700 million rupees ($9.4 million).
The raid was carried out after the cryptocurrency exchange Wazirx discovered a major consumption tax evasion of Rs 405 crore on Friday. The authorities subsequently recovered 49.20 crore in cash from the exchange, which was related to evasion of consumption tax, interest and fines.
Official sources emphasized that they noticed that cryptocurrency exchanges charge commissions to facilitate the buying and selling of cryptocurrencies:
These services attract an 18% goods and services tax rate, and all these services are evading.
Another official source involved in the search told the publication, “These transactions were intercepted by DGGI, and they faced evidence of non-payment of goods and services tax.”
According to the publication, the cryptocurrency exchange subsequently paid 300 million rupees and 400 million rupees in goods and services tax, interest and fines for non-compliance with the statutory provisions of the goods and services tax law. In addition, the Central Indirect Tax and Customs Commission (CBIC) has recovered 700 million rupees from them.
What do you think of the Indian authorities’ raid on cryptocurrency exchanges for tax evasion? Please let us know in the comments section below.
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