- According to the Indian Finance Ministry, out of all the cryptocurrency exchanges that are registered in India, Binance was responsible for the greatest rate of Goods and Service Tax evasion.
A Binance group company contributed the majority of the ₹824.14 crore ($96 million) in GST evasion by cryptocurrency exchanges, according to Minister of State for Finance Pankaj Chaudhary, who was responding to a parliamentary inquiry about these organizations’ tax compliance.
17 of the 47 Virtual Digital Asset Service Providers that registered as reporting organizations under the Financial Intelligence Unit were looked into for possible GST avoidance, according to the government.
Nest Services Limited, a Seychelles-based firm that is part of the Binance Group, was the biggest contributor to the overall amount of GST evasion found by the Indian Finance Ministry, having avoided paying over $85 million, or INR 722.43 crore.
WazirX, run by Zanmai Labs Pvt. Ltd., was the next largest GST evader, with a total of ₹40.51 crore evaded. In July, the platform was compromised, resulting in the loss of $235 million.
A total of ₹122.29 crore, including interest and penalties, has been recovered by the government from all businesses. On the other hand, despite its far higher amount of evasion, no recovery has been accomplished from the Binance-affiliated organization thus far.
A national indirect tax, the GST is levied on the production, distribution, and use of goods and services. Foreign companies that offer services in India must register under the GST system and pay their taxes.
The Directorate General of GST Intelligence of Ahmedabad handed Nest Services a show-cause letter in August after discovering that the fees earned from Binance’s activities were placed in accounts under the company’s control, as crypto.news previously reported.
Before being forced to stop operations and finish registration, the DGGI said that Binance had made at least 4,000 crores, or $476 million, from transaction fees.
After paying a $2.25 million punishment for operating without a license, Binance complied and was registered as a reporting business under the Financial Intelligence Unit in August.
According to reports, Binance has designated a person to communicate with the agency in order to address the tax evasion issue. The exchange has been actively supporting Indian law authorities in their efforts to combat illegal activity in the meantime.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
