qerranews 
Indian Government Recovers $14M, Investigation Targets $97M in Unpaid GST
The Indian government has uncovered significant Goods and Services Tax (GST) evasion by major cryptocurrency exchanges, including global giant Binance and domestic platforms like WazirX, CoinDCX, and CoinSwitch Kuber, according to a recent report by The Economic Times on December 3.
India’s Minister of State for Finance, Pankaj Chaudhary, revealed that authorities detected 824 crore INR ($97 million) in unpaid GST across 17 cryptocurrency companies, signaling heightened scrutiny of crypto taxation in the country.
Key Findings and Recoveries
As part of the ongoing investigations, the Indian government has successfully recovered 122.3 crore INR ($14 million) in unpaid taxes, penalties, and interest, Chaudhary stated in response to a parliamentary inquiry on December 2.
Among the major offenders:
- WazirX: Found evading 40.5 crore INR ($4.8 million) in GST; with penalties and interest, the platform paid 49.18 crore INR ($5.8 million)—20% more than the evaded amount.
- CoinDCX: Unpaid taxes amounted to 16.84 crore INR ($1.9 million).
- CoinSwitch Kuber: Evaded 14.13 crore INR ($1.7 million) in GST.
Notably, Binance, the world’s largest cryptocurrency exchange, is yet to settle its outstanding tax liability of 722 crore INR ($85 million), first reported in August 2024.
Binance Yet to Pay Penalties
While most companies have resolved their tax discrepancies with Indian authorities, Binance and a few others, including Hyperux Technologies, have not yet paid the penalties, according to Chaudhary’s statement.
In response, a Binance spokesperson told Cointelegraph:
“We continue to work closely with regulatory authorities and attend necessary hearings to address any concerns and questions. Binance remains responsive and cooperative and is committed to addressing all necessary tax inquiries.”
Clarity on GST Laws Needed
A spokesperson for WazirX defended the platform’s position, noting that the GST framework for cryptocurrencies lacked clarity at the time the tax evasion occurred:
“The GST law on cryptocurrencies was not clear in India.”
Crypto Exchanges Under Regulatory Spotlight
This crackdown highlights India’s growing enforcement of tax compliance in the crypto industry. In addition to GST recoveries, Chaudhary reported that 47 virtual digital asset service providers have been registered as reporting entities with India’s Financial Intelligence Unit under Anti-Money Laundering laws.
As regulatory oversight tightens, cryptocurrency exchanges operating in India face increasing pressure to ensure tax compliance and transparency.