DGGI Raids Cryptocurrency Exchanges, Detects Rs 70 Crore Tax Evasion

New Delhi: The Directorate General of GST Intelligence (DGGI) has initiated action against cryptocurrency exchanges operating in the country post the massive tax evasion of GST by Cryptocurrency Service providers WazirX.

Sources, who informed in this regard, said “around half dozen offices of Cryptocurrency Service providers have been searched and massive Goods and Service Tax (GST) evasion has been detected by the DGGI”.

Crypto wallet and exchange are platforms where the merchants and consumers can transact with digital assets like bitcoin, ethereum, ripple etc.

Sources said around Rs 70 crore worth of tax evasion has been detected during the crackdown on cryptocurrency trade by the Mumbai Central Goods and Services Tax (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,” ANI quoted 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,” sources added.

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,” the source added.

Another 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.

The Central Board of Indirect Taxes & Customs (CBIC) has recovered Rs 70 crore from Cryptocurrency Service providers, including WazirX, for violating the GST laws.

Earlier on Friday, GST Mumbai East Commissionerate of Mumbai Zone detected the GST evasion of Rs 40.5 crore from cryptocurrency exchange WazirX and recovered Rs 49.20 crores in cash pertaining to the GST evaded, interest and penalty.