The Indian government accused 11 cryptocurrency exchanges of tax evasion, including WazirX, CoinDCX, CoinSwitch, and Kuber, in a written submission to Parliament on Monday. Additionally, the national government seized a total of 94.86 crore, or nearly $12.58 million, from 11 cryptocurrency exchanges for dodging the Goods and Services Tax (GST).
11 Indian Cryptocurrency Exchanges Are Being Monitored For Tax Evasion
On March 28, Minister of State for Finance Pankaj Chaudhary announced a GST evasion recovery of 81.54 crore, or around $10.70 million, from 11 cryptocurrency exchanges in a written response to a question in India’s Parliament, the Lok Sabha. Additionally, interest and penalty charges were collected, totaling 95.86 crore in tax revenue.
Zanmai Labs (WazirX), CoinDCX, CoinSwitch Kuber, Buy Ucoin, UnoCoin, Flitpay, Zeb IT Services, Secure Bitcoin Traders, Giottus Technologies, Awlencan Innovations India (Zebpay), and Discidium Internet Labs are the crypto exchanges under scrutiny 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.
Additionally, government officials saw the collection of revenue from commissions as trading fees, deposit fees, and withdrawal fees during the GST evasion inquiry.
Pratik Gauri, 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.”
Indian Government’s Position on Cryptocurrency Regulation
The Indian government has maintained its anti-cryptocurrency and anti-regulation position. The government, on the other hand, will investigate technological breakthroughs made possible by blockchain technology. Finance Minister Nirmala Sitharaman declared a 30% tax on bitcoin or virtual digital assets in February’s 2022-23 budget.
The Indian Parliament just passed the Finance Bill 2022, approving the 30% crypto tax and an additional 1% tax deducted at source (TDS), despite opposition from Indian cryptocurrency users.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.