- According to reports, cryptocurrency services attract GST rate of duty of 18% “which all of them have been evading”.
- DGGI searches around half a dozen offices of cryptocurrency service providers.
- Consumers can transact with digital assets through crypto exchange platforms.
NEW DELHI: Central Goods and Services Tax (CGST) Mumbai Zone on Saturday detected massive evasion of around ₹700 million during the crackdown on cryptocurrency service provider — WazirX.
According to NTDV, the director-general GST Intelligence (DGGI) searched around half a dozen offices of cryptocurrency service providers following the ₹700 million tax evasion from cryptocurrency trade.
Citing sources, the Indian publication said that DGGI is investigating Coinswitch Kuber by M/s Bitcipher Labs LLP, CoinDCX by M/s Neblio Technologies Private Limited, BuyUCoin by M/S I Block Technologies Private Limited and Unocoin by M/s Unocoin Technologies Private Limited.”
It is pertinent to mention here that consumers and merchants can transact with digital assets like bitcoin, ethereum, ripple, etc., through the crypto wallet and exchange platforms.
The NTDV report said that these cryptocurrency service providers are providing facilitation intermediary services for buying and selling crypto coins.
“These services attract GST rate of duty of 18% which all of them have been evading,” they mentioned.
Sources told ANI: “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 publication further added that under GST, interest and penalty for non-compliance to the statutory provisions of GST law service these service providers paid ₹300 million and ₹400 million.
“For violating GST laws the CBIC has recovered ₹700 million from cryptocurrency service providers including WazirX,” source part of the crackdown said.
CGST commissionerate of Mumbai Zone on Friday detected GST evasion of ₹405 million from WazirX and recovered ₹492 million in cash.