New Delhi: After the massive GST evasion by cryptocurrency service providers WazirX, the GST Intelligence Directorate (DGGI) launched a crackdown on cryptocurrency exchanges active in the country, according to a media report.
“About half a dozen offices of cryptocurrency service providers were raided and a massive goods and services tax (GST) evasion was detected by the DGGI,” sources told ANI .
Crypto wallets and exchanges are platforms on which digital assets like Bitcoin, Ethereum, Ripple, etc. are traded by traders and consumers.
The report citing sources said that around 70 crore rupees of tax evasion were detected during the investigation of cryptocurrency trading by Mumbai CGST and DGGI.
“DGGI Investigates Coinswitch Kuber by M / s Bitcipher Labs LLP, CoinDCX by M / s Neblio Technologies PVT. LTD., BuyUCoin by M / SI Block Technologies Pvt. LTD. And Unocoin by M / s Unocoin Technologies Pvt. LTD, “Sources said, ANI reported.
The report further quoted official sources as saying, “They provide intermediary facilitation services for the buying and selling of crypto coins. These services are subject to an 18% GST duty rate which all have bypassed.”
Another official source, who was part of this research, told ANI: “These service providers were charging a commission for their facilitation of the bitcoin exchange but did not pay the GST tax. These transactions were intercepted by the DGGI and they were confronted with evidence. which proved the non-payment of the GST. “
On Friday, the GST breakout of Rs 40.5 crore from the WazirX cryptocurrency exchange was revealed following the breakout of the GST Mumbai East Commissionerate of Mumbai Zone. He recovered Rs 49.20 crore in cash related to evaded GST, interest and penalties.
A prominent source told ANI that they paid Rs 30 crore and Rs 40 crore as GST, interest and penalties for failing to comply with statutory provisions of the GST law. For breaking GST laws, CBIC recovered Rs 70 crore from cryptocurrency service providers including WazirX.
According to the claim made to CoinDCX, their crypto app allows instant purchase of bitcoin and other cryptocurrencies in India and has over 7.5 million users and over one crore of downloads with Rs 7 billion of cryptos purchased, according to the ANI report.
Unocoin is also a trading platform for Bitcoin, Ether, Tether, among other crypto asset platforms, has offices in Bangalore which have processed over $ 10 million according to their website, the report adds.