The Indian government has confirmed that the country’s tax office is investigating 11 crypto exchanges. They were found guilty and were fined 95.86 crore rupees ($12.6 million).
Tax dodging is being Examined at 11 crypto exchanges
The Indian government responded to queries about cryptocurrency exchange taxation in the Lok Sabha, the lower house of parliament, on Monday.
“Is it true that some crypto exchanges were implicated in GST avoidance, and it was also found that additional cryptocurrency exchanges and large investors in digital currencies are under investigation by the government?” Parliament member S. Ramalingam asked the finance minister.
Furthermore, the parliamentarian inquired whether “the government’s action taken or proposed to be taken against those cryptocurrency exchanges that were detected in GST avoidance.”
Pankaj Chaudhary, Minister of State in the Ministry of Finance, responded:
Central GST organizations have uncovered a few incidents of cryptocurrency exchanges violating the goods and services tax (GST).
He said 11 cryptocurrency exchanges were probed, with the taxation of 81.54 crore rupees discovered. The revenue department has recovered 95.86 crore rupees in total, including interest and penalties.
- Coin switch Kuber,
- Zeb IT Services (Zebpay),
- Secure Bitcoin Traders,
- Giottus Technologies,
- Awlencan Innovations India,
- Wazirx, and
- Discidium Internet Labs
were among the 11 exchanges probed, according to the ministry of state. According to the list, the exchanges with the greatest deception were Wazirx, Coindcx, and Coinswitch Kuber.
“Does the government have any data regarding the number of cryptocurrency exchanges that are now engaged in cryptocurrency exchange business in the country?” Ramalingam, a Lok Sabha member, also asked the finance minister.
Minister Chaudhary’s response was as follows:
Cryptocurrency exchange data is not collected by the government.
Meanwhile, Indian Finance Minister Nirmala Sitharaman has proposed a 30% tax on cryptocurrency revenue and a 1% tax deducted at source TDS on all cryptocurrency transactions. A member of parliament recently requested the government to reconsider applying the 1% TDS, claiming that it would effectively eliminate the crypto asset class.
Also Read: Members of Parliament Claim that a 1% TDS will Crush Crypto Assets in India and Ask the Govt. to Reevaluate the Policy
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