Crypto Firms Evade Rs 824 Crore of GST, Binance is Biggest Offnder, Bitcoin

The segment of cryptocurrency has increased rapidly in the last few years in the country. Many firms in this segment have also been accused of disturbances. Goods and Services Tax (GST) worth more than Rs 824 crore of some big crypto exchanges has been caught. These exchanges include binance, wazirx, coindcx and coinswitch.

The Finance Ministry has told Parliament that only Rs 122.29 crore has been recovered from this theft of GST. In this, Binance Group firm Nest Services has the highest theft of Rs 722.43 crore. However, the finance ministry could not make any recovery from it. Crypto Exchange Wazirx has stolen GST worth more than Rs 40 crore. In this case, the government has recovered Rs 49.18 crore including interest and penalty. The Finance Ministry has reported that under the Prevention of Money Laundering Act, 47 virtual digital asset service providers have registered near the Financial Intelligence Unit (FIU).

Transactions related to cryptocurrency are taxed at a rate of 30 percent. Apart from this, one percent TDS has to be repaid on transactions of more than Rs 50,000 annually. Recently, Binance paid a fine of 22.5 million dollars along with registering with FIU. The fine was imposed in June due to violation of the Prevention of Money Laundering Act (PMLA) of this exchange.

This is the 19th International License for Binance. It has licenses for business in Sweden, Dubai, Kazakhstan and France. Binance’s CEO, Richard Teng said that the exchange is aware of the possibility in the country’s virtual digital assets (VDA) market. Binance received notice to pay GST worth more than Rs 772 crore. This notice was issued by General of GST Intelligence (DGGI). The reason for this notice is a fee recovered from the traders of the country. The amount of this fee is about Rs 4,000 crore and was transferred to the company abroad. DGGI’s Zonal Unit of Ahmedabad caught a disturbance in the functioning of Binance.