The Indian Finance Ministry reported significant GST evasion among registered cryptocurrency exchanges, with Binance topping the list.
Key Details on Tax Evasion
Minister of State for Finance Pankaj Chaudhary revealed that the total GST evasion was ₹824.14 crore ($96 million), with a Binance group company contributing the largest share. Nest Services Limited, a Binance company based in Seychelles, evaded GST amounting to ₹722.43 crore ($85 million). The second largest evader was WazirX, operated by Zanmai Labs Pvt. Ltd., with evasion of ₹40.51 crore.
Registrations and Investigations
Out of 47 registered Virtual Digital Asset Service Providers, 17 entities were investigated for GST evasion. The Indian government managed to recover ₹122.29 crore, including interest and penalties, but no recovery has been made from Nest Services Limited so far.
Binance Actions and Implications
Despite significant evasion, Nest Services is part of the Binance group, which has been actively assisting Indian law enforcement in cracking down on illicit activities. Binance has registered as a reporting entity in August after paying a $2.25 million fine for operating without a license.
Tax evasion among crypto exchanges remains a pressing issue as the Indian government intensifies its efforts to ensure compliance with tax regulations.
