Indian Authorities Raid Cryptocurrency Exchanges for Tax Evasion – Taxes Bitcoin News

India’s Directorate General of GST Intelligence (DGGI) reportedly raided major cryptocurrency exchanges Saturday. Their offices were searched and “massive goods and services tax (GST) evasion has been detected by DGGI.”

Officials from the Tax Department Say That Cryptocurrency Exchanges Are Using GST to Avoid Tax

India’s Directorate General of GST Intelligence (DGGI) reportedly raided major cryptocurrency exchanges across the country Saturday. According to official sources, ANI News Agency detailed:

DGGI searched approximately half a dozen offices belonging to cryptocurrency service providers and discovered massive GST evasion.

Sources claim that authorities are looking into Coinswitch Kuber, Bitcipher Labs, Coindcx(Neblio Technologies), Buyucoin and Unocoin Technologies. According to the publication, tax evasion has been exposed in an amount of Rs 70 crore (roughly $9.4 million).

This raid came after Wazirx, a cryptocurrency exchange discovered a significant GST tax fraud of Rs 40.5 million. Following the raid, Rs 49.20 Crores was recovered by authorities in cash, as well as interest and penalty, relating to GST that had been evaded.

Official sources pointed out that crypto exchanges are charged a commission to facilitate the selling and buying of cryptocurrency.

The GST rates of duty for these services is 18%, which has been avoided by all.

Another official source, who was part of the search, told the publication, “These transactions were intercepted by DGGI and they were confronted with evidence that proved non-payment of GST.”

According to the publication, crypto exchanges paid interest and GST of Rs 30 and 40 crore, respectively, as well as a penalty for not complying with the GST laws. Further, they were also repaid Rs 70 crore by the Central Board of Indirect Taxes and Customs.

Do you have any thoughts about Indian authorities raiding cryptocurrency exchanges to tax evasion? Comment below to let us know your thoughts.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.

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