Raids on Cryptocurrency Providers By GST officials

The conduction of Raids on the Top Cryptocurrency Providers in an operation by GST officials has happened. Let’s find out more about it.

Introduction

After the whole deal with WazirX related to the affair of tax Evasion. The GST department has executed several more raids on various other Cryptocurrency providers. The Directorate General of GST Intelligence has taken some serious action on Cryptocurrency exchanges of the country.

Comments by the official sources

This information was by the sources talking to the ANI. “Around half dozen offices of Cryptocurrency Service providers have been searched and massive Goods and Service Tax (GST) evasion has been detected by DGGI,” the sources said.

“The DGGI is investigating Coinswitch Kuber by M/s Bitcipher Labs LLP, CoinDCX by M/s Neblio Technologies PVT LTD, BuyUCoin by M/S I Block Technologies Pvt LTD Unocoin by M/s Unocoin Technologies Pvt LTD,” they further added.

The amount of taxes related to the issue

Presently, about ₹70 crore worth of tax evasion is seen. And also, whole ordeal happened in the crackdown on Cryptocurrency Trading connected by the Mumbai CGST and DGGI.

According to the tax laws, the Trading of coins is liable of a tax of 18% GST. Indeed, his tax is what these exchanges are evading. Additionally, the official sources revealed that “They are providing facilitation intermediary services for buying and selling of crypto coins. These services attract GST rate of duty of 18 per cent which all of them have been evading.”

More comments on the issue

Additional information about the raid was by another official source to the ANI. The source said that “These service providers were charging a commission for their facilitation to indulge in exchange of bitcoins but were not paying GST tax. These transactions were intercepted by DGGI and they were confronted with evidence that proved non-payment of GST.”

For the violation of GST laws the Central Board of Indirect Taxes and Customs (CBIC) has recovered around ₹70 crore in these raids. Also, hese are from the various Crypto exchanges including WazirX.

Conclusion

Raids have been organised on the Top Cryptocurrency Providers in an operation by GST officials. We’ve previously talked about the raid conducted on WazirX that found out that the company evaded ₹40.5 crore in taxes.

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