In India, GST raids are increasing and many companies found evading tax from their businesses. Recently huge cash of more than 250 crores was found from a businessman in Kanpur, Uttar Pradesh after Income Tax Department’s raid.
Now the largest cryptocurrency exchange of India, WazirX has been found evading 40.50 Crores of Tax. The Goods and Services Tax (GST) department has started investigating Indian cryptocurrency exchanges. On Tuesday the CGST Mumbai Zone recovered 49.2 crores from WazirX as a GST owed including interest and penalty.
The Indirect Tax Department said the WazirX exchange has issued its own crypto token – WRX Coins with Zanmai Labs but had not paid any GST on it. According to the tax department, 18% GST is applicable on these coins.
The Investigators said the Wazir has allowed its users to trade in two ways one with Indian rupees and another with WRX tokens. The exchange was charging a 0.2% commission on trading with INR and 0.1% commission on trading with WRX coins. The exchange found paying GST on INR trading and not on trading through WRX coins.