Breaking News: The Indian Government Charges 11 Crypto Exchanges For Tax Evasion
The Indian government accused 11 cryptocurrency exchanges of tax evasion, including WazirX, CoinDCX, and CoinSwitch Kuber, in a written response to Parliament on Monday, according to Minister of State for Finance Pankaj Chaudhary. Furthermore, the central government has recovered a total of ₹95.86 crores (nearly $12.58 million) from 11 cryptocurrency exchanges for evading the Goods and Services Tax (GST).
On March 28, Minister of State for Finance Pankaj Chaudhary revealed a GST evasion recovery of ₹81.54 crores, or around $10.70 million, from 11 crypto exchanges in a written response to a question in the Lok Sabha of India. In addition, interest and penalty charges were collected, totalling ₹95.86 crores in tax revenue.
Zanmai Labs (WazirX), CoinDCX, CoinSwitch Kuber, BuyUcoin, UnoCoin, Flitpay, Zeb IT Services, Secure Bitcoin Traders, Giottus Technologies, Awlencan Innovations India (Zebpay), and Discidium Internet Labs are among the crypto exchanges under investigation by the GST.
“On a query regarding the number of crypto exchanges operating in the country, Chaudhary said the ministry does not collect such data. The largest tax evasions are by crypto exchanges WazirX, CoinDCX, and CoinSwitch Kuber of ₹40.51 crore, ₹15.70 crore, and ₹13.76 crore, respectively.“
Furthermore, government officials noticed the collection of revenue from commissions as trading fees, deposit fees, and withdrawal fees during the GST evasion investigation. Pratik Gauri, the founder of the 5ireChain blockchain ecosystem, stated:
“The government is trying to find a foothold in understanding the various challenges it will face in implementation once regulations are in place.”
The Indian government has maintained its anti-cryptocurrency and anti-regulation stance. The government, on the other hand, plans to investigate technological advancements using blockchain technology. Finance Minister Nirmala Sitharaman announced a 30% tax on cryptocurrency or virtual digital assets in the latest 2022-23 budget in February.
Despite criticism from Indian crypto users, the Indian Parliament recently passed the Finance Bill 2022, approving the 30% crypto tax and an additional 1% tax deducted at source (TDS).
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