WazirX, CoinDCX, others evaded GST worth Rs 824 crore: MoS Finance Pankaj Chaudhary

The Indian government has uncovered a massive Rs 824.14 crore Goods and Services Tax (GST) evasion by 17 cryptocurrency exchanges, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha.

The Central GST authorities are actively investigating the matter as part of a larger crackdown on tax evasion in the crypto sector.

CoinDCX, WazirX, CoinSwitch are on the list

Among the cases, Nest Services Ltd, a company linked to the Binance Group, has been accused of evading Rs 722.43 crore, making it the most significant case in the investigation. 

So far, the government has recovered Rs 122.29 crore in taxes, penalties, and interest as part of the ongoing crackdown.

Other prominent cryptocurrency platforms under scrutiny include Zanmai Labs Pvt Ltd (operator of WazirX), which allegedly evaded Rs 40.51 crore; CoinDCX, accused of evading Rs 16.84 crore; and CoinSwitch Kuber, which faces allegations of evading Rs 14.13 crore in GST.

Virtual digital assets and taxation  

The crackdown also targeted individual investors dealing in virtual digital assets (VDAs). GST authorities detected Rs 1.76 crore in evasion by four investors, recovering Rs 2.40 crore, including penalties and interest.

The government’s focus on VDAs reflects its broader strategy to regulate cryptocurrencies as taxable "Virtual Digital Assets" under Section 2(47A) of the Income Tax Act.

Crypto transactions are subject to a 30% flat tax rate and a 1% Tax Deducted at Source (TDS) on transactions exceeding Rs.50,000 annually.