The DGGI has targeted a half-dozen offices of Cryptocurrency Service Providers in the region for huge GST evasion. Wallets and exchanges for digital assets such as bitcoin, ethereum, ripple, and others are platforms where merchants and customers can transact business, as per source.
Sources quoted, about Rs 70 crore worth of tax evasion was discovered during the Mumbai CGST and DGGI crackdown on cryptocurrency trafficking. According to reports, MS I Block Technologies Pvt.LTD. offered unocoin to the three organisations, and MS I Block Technologies Pvt. LTD. offered BuyUCoin to the three firms.
According to official sources, they also provide facilitation intermediary services for crypto coin purchasing and trading. According to a separate official source participating in the investigation, these services are subject to an 18 percent GST levy, which they have all been avoiding. These service providers were collecting a commission for allowing people to trade bitcoins, but they were not paying GST. The DGGI kept track of these transactions and presented them with proof that they had not paid GST.
On Friday, the CBIC recovered Rs 70 crore from cryptocurrency service providers such as WazirX, while the District of Mumbai discovered GST evasion of Rs 40.5 crore from cryptocurrency exchange WazirX, which has over 7.5 million users and over one crore downloads, with Rs 7 billion in cryptos purchased.
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