After the massive tax evasion by WazirX, one of the largest cryptocurrency exchanges in India, came to the fore, the Directorate General of GST Intelligence (DGGI) cracked down on crypto exchanges across the country, news agency ANI reported quoting sources.
During the DGGI crackdown, around half a dozen offices of cryptocurrency service providers were searched and massive Goods and Service Tax (GST) evasions were detected.
Tax evasions worth Rs 70 crore were reportedly unearthed by the DGGI and the Mumbai CGST during the crackdown.
Sources told ANI, “The DGGI is investigating Coinswitch Kuber by M/s Bitcipher Labs 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.”
The official sources further said: “They are providing facilitation intermediary services for buying and selling of crypto coins. These services attract GST rate of duty of 18 percent which all of them have been evading.”
Another official source, who was part of this search, said: “These service providers were charging a commission for their facilitation to indulge in exchange of bitcoins but were not paying GST tax. These transactions were intercepted by DGGI and they were confronted with evidence that proved non-payment of GST.”
They reportedly paid Rs 30 crore and Rs 40 crore as GST, interest and penalty for non-compliance to the statutory provisions of GST law.
The CBIC has so far recovered Rs 70 crore from cryptocurrency service providers including WazirX for violating GST laws.
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