The Indian government has uncovered significant tax evasion by major cryptocurrency exchanges, recovering millions in unpaid goods and services tax (GST). This includes actions against industry leaders like Binance and WazirX.

$97 Million in Unpaid GST Identified

India’s Minister of State for Finance, Pankaj Chaudhary, revealed that authorities have detected ₹824 crore ($97 million) in unpaid GST liabilities across 17 crypto firms. Among them, Binance owes a staggering ₹722 crore ($85 million), while WazirX and other platforms like CoinDCX and CoinSwitch Kuber have also been flagged for evasion.

₹122 Crore Recovered So Far

As part of the crackdown, the government has recovered ₹122.3 crore ($14 million), including penalties and interest. WazirX has settled its dues with a 20% penalty, paying ₹49.18 crore ($5.8 million). However, Binance and some other firms are yet to pay their penalties.

Authorities are conducting multiple investigations into tax irregularities in the crypto sector. Binance, in particular, remains under scrutiny for its substantial unpaid GST liabilities. A Binance spokesperson stated that the company is cooperating with regulators and addressing all tax inquiries.

Ambiguities in Crypto Taxation

The tax evasion cases arose during a period when India’s GST laws on cryptocurrencies were unclear, according to a WazirX spokesperson. Meanwhile, 47 virtual digital asset service providers have been registered under the country’s Anti-Money Laundering laws, reflecting India’s tightening grip on crypto regulation.

The Indian government’s actions underscore its intent to enforce compliance and transparency within the fast-evolving crypto sector.