Dozens Of Indian Exchanges Searched After 700M Tax Evasion Detected

Dozens of Indian exchanges got searched after an alleged 700 million Rupee tax evasion got detected as we can see more in our latest crypto news today.

The reports show that the searches were initiated after the lead from Goods and Services Tax Mumbai Zone led to an alleged tax evasion found by the Directorate General of GST Intelligence. India’s tax authorities conducted searches at some of the country’s biggest crypto exchanges including CoinDCX, BuyUCoin, and Unocoin after what they deemed tax evasion of $6 million which was detected at crypto exchange WazirX.

Dozens of Indian exchanges got searched right after as the tax authority revealed more details in a statemetn saying that teh case is a part of the special anti-tax evasion drive that relies on intensive data mining and analytics initiated by the CGST Mumbai zone. They warned that they will cover all crypto exchanges that fall into the Mumbai zone and will intensify the drive in the upcomign days.

WazirX blamed the lack of regulation for the matter as it said it was paying tens of crores worth of GST each month. There was also slight ambiguity in the interpretation of the components that led to a different calculation of GST paid. The exchange even paid additional GST to be cooperative and compliant but there was no intention to evade tax. With that being said, the exchange believes that regulatory clarity is much needed for the entire Indian crypto industry. After the WazirX search, the tax authority of Mumbai along with the DGGI searched dozens of Indian exchanges over the weekend. The Tax authorities searched and recovered from crypto exchanges about $4 million worth of funds that resulted from tax evasion in the crackdown on crypto trades.

As recently reported, The Government officials from CGST Mumbai Zone recovered the funds from the WazirX crypto exchange after detecting a GST evasion of $5.43 million made on trading commissions. The Indian tax official reportedly paid over $6.6 million following the non-payment of Goods and Services Tax on trade Commissions. The total recovery includes a pending tax of $5.43 million with the interest and penalty for non-payment. It is also important to note that the exchange and its tokens are owned by Binance which is the world’s biggest crypto exchange in terms of trading volume. WazirX CEO Nischal Shetty said that the importance of regulatory clarity is a key point for retail adoption.