Cryptocurrency Exchanges Across India Set To Face DGCI Crackdown, Rs. 70 Crore Tax Evasion Uncovered


Following the massive tax evasion of GST by cryptocurrency service provider WazirX, GST Intelligence’s general management has slipped heavily on the cryptocurrency exchanges operating in the country, sources said.

“About half a dozen offices of cryptocurrency service providers have been searched and the DGGI has exposed massive tax evasion (GST),” sources told ANI.

Crypto Wallet and Exchange are platforms on which merchants and consumers with digital assets such as Bitcoin, Ethereum, Ripple etc.

According to sources, around Rs. $ 70 billion in tax evasion was uncovered during the crackdown on cryptocurrency trading by Mumbai CGST and DGGI.

“DGGI is investigating CoinSwitch Kuber from M / s Bitcipher Labs LLP, CoinDCX from M / s Neblio Technologies Pvt. Ltd., BuyUCoin from M / SI Block Technologies Pvt. Ltd. and Unocoin from M / s Unocoin Technologies Pvt. Ltd. “Sources said.

Official sources went on to say, “They provide brokerage services for the buying and selling of crypto coins. These services have an 18 percent GST tariff that everyone has bypassed.”

Another official source involved in the search told ANI, “These service providers charged a commission for their Bitcoin exchange facility, but did not pay GST tax. These transactions were intercepted by the DGGI and confronted with evidence that proved that the GST was not paid. “

A top source told ANI that they paid Rs. 30 crore and Rs. 40 crore as GST, interest and penalty for failure to comply with the legal requirements of the GST Act. For violating GST laws, the CBIC received Rs back. 70 crore from cryptocurrency service providers, including WazirX.

On Friday, the GST Mumbai East Commissionerate of Mumbai Zone discovered that GST evasion of Rs. 40.5 crore from the WazirX cryptocurrency exchange and Rs. 49.20 crore recovered in cash in relation to evaded GST, interest and penalties.

According to the claim by CoinDCX, their crypto app enables the instant purchase of Bitcoin and other cryptocurrencies in India and has purchased more than 7.5 million users and more than 1 crore downloads with Rs. 7 billion cryptos.

Based in Delhi-NCR, India, BuyUcoin has more than one million users and traded more than 800 million US dollars, according to the website where CoinSwitch Kuber trading platform processed over $ 5 billion (approximately 37.260 billion rupees) Dollars (about 5,960 billion rupees).

Unocoin is also a platform for trading Bitcoin, Ether, Tether and other such platforms for crypto assets has offices in Bangalore that have processed more than 10 million according to their website.

Interested in cryptocurrency? We discuss everything about crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music, and anywhere you get your podcasts.

Cryptocurrency is an unregulated digital currency, not legal tender and is subject to market risks. The information provided in this article is not intended as financial advice, trading advice, or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV is not responsible for losses that may arise from an investment based on perceived recommendations, forecasts or other information contained in the article.


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