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Government Claims Binance, WazirX Avoiding Taxes in India

Binance, WazirX among crypto exchanges under fire for GST evasion in India.

3 minDecember 4, 2024

Highlights:

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Indian government uncovers $97 million in unpaid GST from crypto exchanges like Binance and WazirX.

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WazirX, CoinDCX, and CoinSwitch Kuber face tax evasion, with partial recoveries made.

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Binance owes unpaid GST taxes, but has yet to settle with Indian authorities.

Government Claims Binance, WazirX Avoiding Taxes in India

The Indian government recently revealed that several major cryptocurrency exchanges, including Binance and WazirX, owe significant unpaid Goods and Services Taxes (GST). According to Pankaj Chaudhary, the Minister of State for Finance, the amount totals ₹824 crore, roughly $97 million. 

 

Investigations Target Multiple Exchanges

 

 

The government has launched investigations into crypto platforms like WazirX, CoinDCX, and CoinSwitch Kuber. These exchanges are part of an ongoing crackdown on GST evasion in the crypto space. 

 

Earlier this year, Binance faced accusations of evading ₹722 crore, about $85 million, in taxes. This discovery raises concerns about tax evasion within the growing crypto sector in India. However, this issue remains unresolved.

 

The government has already recovered ₹122.3 crore ($14 million) from these companies. This includes taxes, penalties, and interest. WazirX made the largest contribution, paying ₹49.18 crore ($5.8 million)—20% more than the original amount owed. 

 

Binance Faces Ongoing Scrutiny

 

While some exchanges have settled, Binance has not paid its penalty. The company still owes ₹722 crore in unpaid GST, and no recovery payment has been reported. This lack of resolution puts Binance under heavy scrutiny from Indian regulators. 

 

Without addressing this issue, the company could face legal and financial consequences. The investigation is part of the broader effort by Indian authorities to tackle tax evasion in the cryptocurrency industry. 

 

For now, this discovery raises concerns about tax evasion within the growing crypto sector in India. As investigations continue, Binance, WazirX, and other exchanges must act to resolve their legal challenges or risk further penalties.

 

 

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