Raids on Six Indian Crypto Exchanges Uncovered $9.4M in Unpaid Taxes

by Arnab Shome
  • WazirX alone evaded $6 million in taxes.
  • The tax authorities will intensify their searches in the coming months.
Indian crypto exchanges

Indian tax authorities have raided around half a dozen of the country’s biggest cryptocurrency exchanges under the suspicion of tax evasion. Some of the raided exchanges are CoinSwitch Kuber, CoinDCX, BuyUCoin and Unocoin.

According to the sources of local media, the crackdown by the Mumbai CGST and DGGI has detected tax evasion of more than $9.41 million by the Indian exchanges.

“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,” an official source told ANI, an Indian news agency.

WazirX Is on the Top

The mass raid on the exchanges was kicked off after the authorities at the end of last month detected around $6 million in tax evasion by WazirX, which i a top crypto exchange in India. The exchange was blamed for evading $5.45 million, while the rest are in interest and penalties.

However, the Binance-owned exchange blamed it on the unclear taxation regime in the country and highlighted that it has already ‘been diligently paying tens of crores worth of GST every month’. It has also paid the asked additional taxes after the crackdown.

In a statement, WazirX said: “There was an ambiguity in the interpretation of one of the components which led to a different calculation of GST paid. However, we voluntarily paid additional GST in order to be cooperative and compliant. There was and is no intention to evade tax. That being said, we strongly believe that regulatory clarity is the need of the hour for the Indian crypto industry.”

Furthermore, the Indian tax authorities warned that it will intensify its raids against crypto companies in the coming days.

Indian tax authorities have raided around half a dozen of the country’s biggest cryptocurrency exchanges under the suspicion of tax evasion. Some of the raided exchanges are CoinSwitch Kuber, CoinDCX, BuyUCoin and Unocoin.

According to the sources of local media, the crackdown by the Mumbai CGST and DGGI has detected tax evasion of more than $9.41 million by the Indian exchanges.

“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,” an official source told ANI, an Indian news agency.

WazirX Is on the Top

The mass raid on the exchanges was kicked off after the authorities at the end of last month detected around $6 million in tax evasion by WazirX, which i a top crypto exchange in India. The exchange was blamed for evading $5.45 million, while the rest are in interest and penalties.

However, the Binance-owned exchange blamed it on the unclear taxation regime in the country and highlighted that it has already ‘been diligently paying tens of crores worth of GST every month’. It has also paid the asked additional taxes after the crackdown.

In a statement, WazirX said: “There was an ambiguity in the interpretation of one of the components which led to a different calculation of GST paid. However, we voluntarily paid additional GST in order to be cooperative and compliant. There was and is no intention to evade tax. That being said, we strongly believe that regulatory clarity is the need of the hour for the Indian crypto industry.”

Furthermore, the Indian tax authorities warned that it will intensify its raids against crypto companies in the coming days.

About the Author: Arnab Shome
Arnab Shome
  • 6300 Articles
  • 80 Followers
About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6300 Articles
  • 80 Followers

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