Read

Binance has received a show-cause letter from the Directorate General of GST Intelligence of Ahmedabad to pay inr 722 crores, approximately $86 million USD, as goods and services tax.
According to a Times of India <a href="https://timesofindia.indiatimes.com/technology/tech-news/binance-the-worlds-largest-crypto-exchange-gets-rs-722-crore-gst-from-dggi/articleshow/112304561.cms" target="_blank" rel="noopener noreferrer nofollow">report</a>, the DGGI, an agency operating under India’s Ministry of Finance to combat tax evasion, alleges that Binance is liable to pay GST as it had collected fees from Indian nationals using its platform.
Binance also reportedly failed to register under the GST framework, resulting in the recent scrutiny.&nbsp;
The GST is a comprehensive indirect tax levied on the manufacture, sale, and consumption of goods and services at the national level. Foreign entities operating in India are required to pay this tax if they offer their services to Indians and register under the GST framework.
Binance allegedly earned at least 4,000 crores, approximately $476 million, from transaction fees, a source told Times of India.&nbsp;
Investigations conducted by the DGGI revealed that the fees were deposited in an account controlled by Nest Services Limited, a Seychelles-based Binance subsidiary.
On top of this, the DGGI has also reached out to other companies in the Binance group, including those operating in the Cayman Islands and Switzerland.
In response, Binance has reportedly appointed a representative to engage with the agency to resolve the issue.
You might also like: <a href="https://crypto.news/indias-financial-regulator-hits-crypto-exchange-binance-with-2-25m-fine/" rel="noopener noreferrer nofollow"> India’s financial regulator hits crypto exchange Binance with $2.25m fine </a>
For the DGGI, this was the first instance where it issued a show cause of this nature to a cryptocurrency firm. However, the agency has previously <a href="https://economictimes.indiatimes.com/news/india/dggi-cracks-down-on-cryptocurrency-exchanges-across-country-rs-70-crore-tax-evasion-detected/articleshow/88632287.cms?from=mdr" target="_blank" rel="noopener noreferrer nofollow">cracked down</a> on domestic cryptocurrency exchanges to thwart tax evasion.&nbsp;
During the 2022 investigation, the <a href="https://crypto.news/india-probes-betting-platforms-for-crypto-tax-evasion/" target="_blank" rel="noopener noreferrer nofollow">DGGI</a> found that several crypto exchanges were responsible for 70 crores, approximately $8.34 million,&nbsp; in tax evasion.&nbsp;
Meanwhile, Binance is looking at a second hefty payment to be made to Indian regulators. In June, the nation’s Financial Intelligence Unit <a href="https://crypto.news/indias-financial-regulator-hits-crypto-exchange-binance-with-2-25m-fine/" target="_blank" rel="noopener noreferrer nofollow">slapped the exchange with a $2.25 million fine</a> for failing to register its operations.
Despite the fine, sources claimed that the exchange was <a href="https://crypto.news/binance-eyes-return-to-india-as-an-fiu-compliant-platform/" target="_blank" rel="noopener noreferrer nofollow">considering returning to India</a> as a compliant platform and was willing to pay the fine.
The exchange was <a href="https://crypto.news/india-cracks-down-on-binance-eight-other-foreign-exchanges/" target="_blank" rel="noopener noreferrer nofollow">banned</a> in January but largely dominated the Indian market prior to that. When India implemented a 30% capital gains tax and a 1% TDS on crypto profits and trades, investors rushed to the platform to <a href="https://crypto.news/indian-crypto-industry-calls-for-tax-cuts-amid-investors-exodus/" target="_blank" rel="noopener noreferrer nofollow">bypass the added costs</a>.
Binance had initially made its foray into India by <a href="https://crypto.news/binance-indian-crypto-exchange-wazirx-native-fiat-support/" target="_blank" rel="noopener noreferrer nofollow">acquiring local crypto exchange WazirX</a>. However, it later distanced itself, claiming the acquisition was <a href="https://crypto.news/money-laundering-binance-distances-self-from-wazirx/" target="_blank" rel="noopener noreferrer nofollow">not completed</a>, right after India’s ED initiated a money laundering investigation against WazirX.
Read more: <a href="https://crypto.news/indias-financial-regulator-hits-crypto-exchange-binance-with-2-25m-fine/" rel="noopener noreferrer nofollow"> India’s financial regulator hits crypto exchange Binance with $2.25m fine </a>

Binance asked to pay $86m in Indian Goods and Services Tax

crypto.news

Other articles published on Aug 6, 2024

Robinhood 24-Hour Market Faces Overnight Trading Suspension

Crash or Dip? Top 10 reasons why prices went DOWN!

OKX's Venture Arm and Aptos Foundation Announce $10M Fund to Boost Aptos Ecosystem

Important: Minimum IDO Tier Has Increased From 250 to 1,000 $POLS

TRON H1 2024: From Stablecoins to Bitcoin and Beyond

Hong Kong Police Arrest Four, Including 14-Year-Old, for Counterfeit Crypto Scam

Join our free newsletter for daily crypto updates!