GST Evasion Cases by Cryptocurrency Exchanges in India

Ministry of Finance provided details regarding cryptocurrency exchanges involved in GST evasion in response to Lok Sabha Unstarred Question No. 966. A total of 47 Virtual Digital Asset Service Providers (VDA SPs) are registered under the Prevention of Money-laundering Act, 2002. In terms of GST evasion, 17 cryptocurrency exchanges were investigated, with a total evasion of Rs. 824.14 crore, of which Rs. 122.29 crore has been recovered (including interest and penalties). Additionally, four cryptocurrency investors were investigated for Rs. 1.76 crore in evasion, with a recovery of Rs. 2.40 crore. A list of cryptocurrency exchanges under investigation, such as CoinDCX, WazirX, and CoinSwitch, along with details of the evasion and recovery, is also provided. The Government has taken or proposed actions against exchanges involved in these evasion cases.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTEMENT OF REVENUE

LOK SABHA
UN-STARRED QUESTION NO. 966

TO BE ANSWERED ON MONDAY, THE 02^ND DECEMBER, 2024
AGRAHAYANA 11, 1946 (SAKA)

GST Evasion by Cryptocurrency Exchanges

966. SHRI NARAYAN TATU RANE:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government has any data regarding the number of cryptocurrency exchanges currently involved in cryptocurrency exchange business in the country;

(b) if so, the details thereof;

(c) whether some cryptocurrency exchanges were involved in evasion of Goods and Services Tax (GST) and whether other cryptocurrency exchanges and major investors in digital currency are also under investigation by the Government;

(d) if so, the details thereof; and

(e) the details of action taken or proposed to be taken by the Government against cryptocurrency exchanges involved in GST evasion?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a) & (b): Total 47 Virtual Digital Asset Service Providers (VDA SPs) have been registered as Reporting Entities with Financial Intelligence Unit-India under the Prevention of Money-laundering Act, 2002 till date. Details are enclosed as Annexure-A.

(c) & (d): Few cases of evasion of Goods and Services Tax (GST) by cryptocurrency exchanges and investors have been detected by Central GST formations as given below:

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(e): The details of cases booked against cryptocurrency exchanges for GST evasion and action taken by Government are enclosed as Annexure-B.

Annexure-A

Details of 47 Virtual Digital Asset Service Providers (VDA SPs) Registered with Financial Intelligence Unit-India (FIU-IND)

Annexure-B

Details of cases booked against cryptocurrency exchanges for GST evasion