Binance, WazirX among crypto firms evading taxes in India, says gov’t

Unpaid GST Taxes Detected in Indian Cryptocurrency Exchanges

The Indian government has identified substantial unpaid goods and service taxes (GST) from major cryptocurrency exchanges such as Binance and WazirX.

Significant GST Owed by Exchanges

As reported by The Economic Times on December 3rd, India's Minister of State for Finance, Pankaj Chaudhary, revealed that the government had detected 824 crore Indian rupees (approximately $97 million) in unpaid GST taxes from various crypto exchanges.

Ongoing Investigations

Authorities have initiated investigations into several crypto exchanges, including WazirX, CoinDCX, and CoinSwitch Kuber. This follows a previous demand from Indian law enforcement in August for 722 crore Indian rupees ($85 million) in unpaid taxes from Binance.

Recovered Taxes

The Indian government has already recovered 122.3 crore rupees ($14 million) in taxes, penalties, and interest as part of its ongoing crackdown, as reported by Chaudhary in response to a parliamentary question on December 2nd.

Specific Exchange Details

The statement identified 17 crypto companies involved in GST evasion, including:

• WazirX: 40.5 crore rupees ($4.8 million) in unpaid GST taxes
• CoinDCX: 16.84 crore rupees ($1.9 million)
• CoinSwitch Kuber: 14.13 crore rupees ($1.7 million)

Binance's Status

Although other companies have paid penalties, Binance and Hyperux Technologies have not yet settled with the authorities. Binance has not paid the 722 crore rupees GST tax evasion penalty, and its recovery payment is not included in the total recovered amount.

Binance's Response

A Binance spokesperson emphasized the company's commitment to cooperating with regulatory authorities and addressing any concerns.

WazirX's Explanation

A spokesperson from WazirX attributed the tax evasion case to the lack of clear GST laws on cryptocurrencies in India.

Virtual Asset Service Providers

Chaudhary also stated that India has registered 47 virtual digital asset service providers as reporting entities with the Financial Intelligence Unit under the country's Anti-Money Laundering laws.