Online

Request

Fine

<p>The post <a href="https://coinpedia.org/news/indias-dggi-issues-rs-722-crore-86-88-million-gst-fine-notice-to-binance/">India’s DGGI Issues Rs 722 Crore (86.88 Million) GST Fine Notice to Binance</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p><a href="https://coinpedia.org/news/indias-2024-budget-abolished-angel-tax-major-boost-for-startups-and-web3/">India’s</a>, Directorate General of Goods and Services Tax Intelligence (DGGI) has issued a show cause notice to Binance, demanding a hefty ₹722 crore ($86.88 million) under GST regulations. The notice alleges that Binance, a prominent global cryptocurrency exchange, collected at least Rs 4,000 crore in trading fees from its Indian users without registering under the Indian GST framework.</p> 
<h2 class="wp-block-heading" id="h-722-crore-allegations-against-binance">722 Crore Allegations Against Binance</h2> 
<p>Binance, a dominant player in the global cryptocurrency market with at least 40% market share and operations in over 150 countries, has come under scrutiny from Indian tax authorities for failing to register under the Indian GST framework.</p> 
<p>The company reportedly earned around ₹4,000 crore from transaction fees charged to its Indian customers. With a user base of 90 million worldwide, a significant portion of which is based in India, Binance’s revenue and operations are now being closely examined.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Breaking : <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f1ee-1f1f3.png" alt="🇮🇳" class="wp-smiley" style="height: 1em; max-height: 1em;">DGGI issued a show cause notice to Binance, demanding Rs 722 crore under GST. <br><br>Binance collected trading fees from users &amp; did not register under the Indian GST framework.</p>— Crypto India (@CryptooIndia) <a href="https://twitter.com/CryptooIndia/status/1820708197398933847?ref_src=twsrc%5Etfw">August 6, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>Investigations have revealed that these earnings were credited to an account of Nest Services Limited, a Binance Group company based in Seychelles. This has led to closer scrutiny of Binance’s tax practices in India.</p> 
<p>Due to non-compliance with Indian regulations, the DGGI Ahmedabad zonal unit has issued a show-cause notice to Binance. The notice demands a substantial fine of ₹722 crore ($86.88 million) under Goods and Services Tax (GST) regulations.</p> 
<h2 class="wp-block-heading" id="h-non-response-to-compliance-request">Non-Response to Compliance Request</h2> 
<p>The Directorate General of Goods and Services Tax Intelligence (DGGI) issued a notice to Binance, instructing the company to comply with Indian GST regulations. Despite sending emails to Binance’s offices in Seychelles, the Cayman Islands, and Switzerland, the DGGI did not receive any response.</p> 
<p>Under Indian GST laws, foreign service providers must pay GST on services provided to Indian residents, especially under the Online Information and Database Access or Retrieval (OIDAR) category.</p> 
<h2 class="wp-block-heading" id="h-binance-recent-penalties">Binance Recent Penalties</h2> 
<p>Earlier this year, Binance was approved by India’s Financial Intelligence Unit (FIU) to register as a virtual asset service provider (VASP). However, last month, the <a href="https://coinpedia.org/news/binance-is-back-to-india/">FIU imposed an ₹18 crore fine</a> on Binance for failing to adhere to anti-money laundering (AML) regulations.</p> 
<p>Additionally, Binance is facing a trial in <a href="https://coinpedia.org/news/nigeria-withdraws-tax-allegations-against-binance-executives/">Nigeria for alleged tax</a> evasion following a crackdown on cryptocurrency activities in the country.</p>

India’s DGGI Issues Rs 722 Crore (86.88 Million) GST Fine Notice to Binance

Table of Contents

CoinPedia News

Other articles published on Aug 6, 2024

Why Bitcoin, Ethereum ETF volumes surged despite the crypto slump

SEC Litigation Crypto: Court Urged to Deny Coinbase's Document Subpoena Request

Wrapped Bitcoin Up More Than 8% In 24 hours

Convergence Finance Sends Negotiation Message to Hacker

Middle East Conflict and Market Impact: Tuesday, August 6

PAAL AI Gains Momentum in Declining Market

Join our free newsletter for daily crypto updates!