Global crypto exchange Binance has received a goods and services tax (GST) bill of Rs 722 crore ($87 million) in India for non-compliance with the country’s tax regulations.
This is the first instance of a cryptocurrency firm facing such scrutiny in India. A source claimed that Binance earned over Rs 4,000 crore from transaction fees charged to Indian customers. However, these earnings were credited to a Binance Group company located outside of India.
Indian Tax Regulator Hits Binance With Rs 722 crore ($87 Million) GST Bill
Global cryptocurrency exchange Binance has issued a goods and services tax (GST) bill totaling Rs 722 crore (approximately $87 million) in India. The Indian Directorate General of GST Intelligence (DGGI) in Ahmedabad delivered a show cause notice to Binance, requiring payment of the GST. This marks the first instance of such a notice being directed at a cryptocurrency firm.
As part of a thorough investigation into the company’s tax conduct in India, officials have been examining Binance’s operations to ensure adherence to the nation’s tax laws.
Local media confirmed that Binance was notified for collecting fees from Indian customers trading crypto assets on its platform, classified under online information database access or retrieval (OIDAR) services, which involve providing data or information electronically for a fee.
“Binance reportedly earned at least Rs 4,000 crore from transaction fees charged to Indian customers. The company has a user base of 90 million users globally, including a substantial number of customers from India too,” the Times of India quoted a top source familiar with the matter as saying. The source added:
Detailed investigation revealed that the earnings of these fees were credited to the account of a Binance Group company — Nest Services Limited — based in Seychelles.
Earlier this year, Binance received approval from India’s Financial Intelligence Unit (FIU) to register as a virtual asset service provider (VASP).
Nonetheless, the FIU imposed an Rs 18.8 crore fine on the company in June for non-compliance with anti-money laundering regulations. Additionally, Binance has yet to register under the Indian GST system.
This Binance GST probe highlights the increasing regulatory scrutiny that cryptocurrency exchanges face globally. In recent years, Binance has been monitored by various international regulators due to concerns about compliance and transparency.
What do you think about Binance’s $87 million GST bill in India? Let us know in the comments section below.
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