GST raids Cryptocurrency providers in India

The Directorate General of GST Intelligence (DGGI) raided about half a dozen Cryptocurrency service providers in the country, after the huge tax evasion of goods and service tax (GST) by WazirX came to light and recovered Rs 49.20 Crores in cash pertaining to GST evaded, interest and penalty. According to news agency report DGGI crackdown detected tax evasion worth Rs 70 crore. Around half dozen offices of cryptocurrency service providers have been searched and massive GST evasion has been detected by DGGI. On December 30, 2021, DGGI Mumbai Zone began an investigation into WazirX for alleged evasion of Rs 40.5 crore in GST. Late on December 30, the tax department recovered Rs 49.2 crore, including the GST plus interest and penalties, from the company.

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