Central tax officials have uncovered goods and services tax (GST) evasion amounting to ₹824.14 crore across 17 cryptocurrency exchanges, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha on December 2.
Recoveries and Evasion Details
Out of the total evasion, the government has recovered ₹122.29 crore, including GST dues, interest, and penalties. However, a significant portion remains unrecovered, with the largest evasion attributed to Nest Services Ltd., a Binance group company, amounting to ₹722.43 crore. No recovery has been made in this case.
Other major cases of GST evasion include:
- Zanmai Labs Pvt. Ltd. (WazirX): ₹40.51 crore
- CoinDCX: ₹16.84 crore
- CoinSwitch Kuber: ₹14.13 crore
GST Evasion in Virtual Digital Asset Investments
In addition to exchanges, GST officials investigated four investors in virtual digital assets, detecting ₹1.76 crore in evasion. Recovery of ₹2.4 crore has been made, covering GST dues, penalties, and interest.
Compliance Under PMLA
The minister also noted that 47 Virtual Digital Asset Service Providers (VDA SPs) have registered as Reporting Entities with the Financial Intelligence Unit-India under the Prevention of Money Laundering Act, 2002.
Government’s Stance on Tax Compliance
The government’s actions underline its commitment to tightening tax compliance in the growing cryptocurrency sector. With increased scrutiny, service providers and investors are expected to adhere strictly to GST norms and anti-money laundering regulations.
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