Top Cryptocurrency providers in India raided by tax officials

After the massive tax evasion of GST by Cryptocurrency Service providers WazirX_ the Directorate General of GST Intelligence has come down heavily on Cryptocurrency exchanges operating in the country_ said sources.

"Around half dozen offices of Cryptocurrency Service providers have been searched and massive Goods and Service Tax (GST) evasion has been detected by DGGI_" sources told ANI.

Crypto wallet and exchange are platforms where merchants and consumers can transact with digital assets like bitcoin_ ethereum_ ripple_ etc.

According to sources_ around ¹ 70 crore worth of tax evasion has been detected during the crackdown on Cryptocurrency trade by Mumbai CGST and DGGI.

"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_" sources said.

Official sources further said_ "They 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."

Another official source_ who was part of this search_ 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."

A top source told ANI that they paid ¹ 30 crore and ¹ 40 crore as GST_ interest and penalty for non-compliance to the statutory provisions of GST law. For violating GST laws the CBIC has recovered ¹ 70 crore from Cryptocurrency Service providers including WazirX.

On Friday_ GST Mumbai East Commissionerate of Mumbai Zone detected GST evasion of ¹ 40.5 crore from cryptocurrency exchange WazirX and recovered ¹ 49.20 Crores in cash pertaining to GST evaded_ interest and penalty.

As per the claim made CoinDCX their crypto app allows buying of bitcoin and other cryptocurrencies instantly in India and has more than 7.5 million users and more than one crore downloads with ¹ 7 billion cryptos purchased.

As per the website which CoinSwitch Kuber trading platform has processed over USD 5 billion_ BuyUcoin based out of Delhi-NCR in India has more than one million users and traded more than USD 800 million.

Unocoin is also a platform to trade Bitcoin_ Ether_ Tether_ among other such platforms of crypto assets has offices in Bangalore which have processed more than 10 million as per their website.