In a written submission to Parliament on Monday, Minister of State for Finance Pankaj Chaudhary stated the Indian government has charged 11 crypto exchanges of tax evasion, including WazirX, CoinDCX, and CoinSwitch Kuber. In addition, the national government has seized a total of Rs 95.86 crore ($12.58 million) from 11 cryptocurrency exchanges for dodging the Goods and Services Tax (GST).
11 Indian cryptocurrency exchanges are being investigated for tax evasion.
On March 28, Minister of State for Finance Pankaj Chaudhary reported a GST evasion recovery of 81.54 crore ($10.70 million) from 11 crypto exchanges in a written response to a question in India’s Lok Sabha. In addition, interest and penalty costs 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 among the crypto exchanges under scrutiny by the GST.
In response to a question on the number of crypto exchanges in the country, Chaudhary stated that the ministry does not collect such information. Crypto exchanges WazirX, CoinDCX, and CoinSwitch Kuber, with total tax evasions of 40.51 crore, 15.70 crore, and 13.76 crore, respectively, have the most tax evasions.
Furthermore, government inspectors detected the collection of revenue from commissions as trading fees, deposit fees, and withdrawal fees during the GST evasion inquiry.
The founder of the blockchain ecosystem 5ireChain, Pratik Gauri, said:
“The government is attempting to have a better grasp of the many problems it will face in putting regulations in place once they are in place.”
The 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 using blockchain technology. Finance Minister Nirmala Sitharaman announced a 30% tax on bitcoin or virtual digital assets during the February 2022-23 budget.
Despite opposition from Indian crypto users, the Indian Parliament just passed the Finance Bill 2022, approving the 30% crypto tax and an additional 1% tax deducted at source (TDS).