Cryptocurrency | GST Raid Top cryptocurrency service providers raided for massive GST evasion
New Delhi: After the massive GST evasion by Cryptocurrency Service providers WazirX, the Directorate General of GST Intelligence (DGGI) has launched a crackdown on Cryptocurrency exchanges active in the country, media report said.
"Around half dozen offices of Cryptocurrency Service providers have been searched and massive Goods and Service Tax (GST) evasion has been detected by DGGI," sources told ANI.
Crypto wallets and exchanges are platforms where digital assets like bitcoin, ethereum, ripple, etc. are traded by merchants and consumers.
The report citing sources said around Rs 70 crore worth of tax evasion has been detected during the investigation on Cryptocurrency trade by Mumbai CGST and DGGI.
"The DGGI is investigating Coinswitch Kuber by M/s Bitcipher Labs LLP, CoinDCX by M/s Neblio Technologies PVT. LTD., BuyUCoin by M/S I Block Technologies Pvt. LTD. and Unocoin by M/s Unocoin Technologies Pvt. LTD," sources said, ANI reported.
The report further quoted the official sources as saying: "They are providing facilitation intermediary services for buying and selling of crypto coins. These services attract GST rate of duty of 18 per cent which all of them have been evading."
Another official source, who was part of this search, told ANI, "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."
On Friday, the GST evasion of Rs 40.5 crore from cryptocurrency exchange WazirX came to light following GST Mumbai East Commissionerate of Mumbai Zone's evasion. It recovered Rs 49.20 crores in cash linked to GST evaded, interest and penalty.
A top source told ANI that they paid Rs 30 crore and Rs 40 crore as GST, interest and penalty for non-compliance to the statutory provisions of GST law. For violating GST laws the CBIC has recovered Rs 70 crore from Cryptocurrency Service providers including WazirX.
As per the claim made CoinDCX their crypto app allows buying of bitcoin and other cryptocurrencies instantly in India and has more than 7.5 million users and more than one crore downloads with Rs 7 billion cryptos purchased, the ANI report said.
Unocoin is also a platform to trade Bitcoin, Ether, Tether, among other such platforms of crypto assets has offices in Bangalore which have processed more than 10 million as per their website, the report added.
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