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Binance Under Fire in India for $85M GST Evasion Allegations
India accuses Binance of evading $85M in GST through its Seychelles-based entity.
Binance helped Indian authorities combat crypto fraud schemes like E-Nugget and Fiewin.
Indian government recovers $14M from other exchanges, with Binance still under investigation.
India’s Finance Ministry has accused Binance of evading approximately $85 million in Goods and Services Tax (GST). The charges involve a Binance Group company, Nest Services Limited, based in Seychelles. The entity reportedly earned revenue from Indian users without proper tax compliance.
Minister of State for Finance Pankaj Chaudhary revealed that Binance topped the list of 17 crypto entities investigated for GST evasion. The total GST evasion by these exchanges amounted to ₹824.14 crore ($96 million). Nest Services alone accounted for ₹722.43 crore ($85 million) of this amount. The Directorate General of GST Intelligence (DGGI) issued a show-cause notice to the company in August.
The government has recovered ₹122.29 crore ($14 million) from other exchanges, including penalties and interest. However, no recovery has been made so far from the Binance-linked entity. The Finance Ministry stated that Binance operated without proper tax registration until recently.
Binance has contested the allegations, stating it complies with local laws. To address the concerns, the company appointed a representative to liaise with Indian tax authorities. Despite this, the DGGI claims Binance earned over ₹4,000 crore ($476 million) in transaction fees from Indian users without proper tax registration.
India requires foreign entities providing services within its borders to register under the GST framework. Crypto exchanges are subject to GST on services provided to Indian users. Binance became a registered reporting entity in August after paying a fine of $2.25 million for previous non-compliance.
It is noteworthy that Binance has actively supported Indian authorities in tackling crypto crimes. The exchange partnered with India’s Enforcement Directorate in several high-profile cases. Binance helped dismantle operations linked to fraud schemes, including the E-Nugget and Fiewin scams. These cases involved large-scale money laundering activities.
India continues to investigate crypto exchanges and major investors for potential tax evasion and illicit activities. The government’s actions reflect efforts to regulate the fast-growing cryptocurrency market. Binance remains under scrutiny for its role in the Indian crypto sector.
The post Binance Under Fire in India for $85M GST Evasion Allegations appeared first on CryptoTale.
Binance helped Indian authorities combat crypto fraud schemes like E-Nugget and Fiewin.
Indian government recovers $14M from other exchanges, with Binance still under investigation.
India’s Finance Ministry has accused Binance of evading approximately $85 million in Goods and Services Tax (GST). The charges involve a Binance Group company, Nest Services Limited, based in Seychelles. The entity reportedly earned revenue from Indian users without proper tax compliance.
Minister of State for Finance Pankaj Chaudhary revealed that Binance topped the list of 17 crypto entities investigated for GST evasion. The total GST evasion by these exchanges amounted to ₹824.14 crore ($96 million). Nest Services alone accounted for ₹722.43 crore ($85 million) of this amount. The Directorate General of GST Intelligence (DGGI) issued a show-cause notice to the company in August.
The government has recovered ₹122.29 crore ($14 million) from other exchanges, including penalties and interest. However, no recovery has been made so far from the Binance-linked entity. The Finance Ministry stated that Binance operated without proper tax registration until recently.
Binance has contested the allegations, stating it complies with local laws. To address the concerns, the company appointed a representative to liaise with Indian tax authorities. Despite this, the DGGI claims Binance earned over ₹4,000 crore ($476 million) in transaction fees from Indian users without proper tax registration.
India requires foreign entities providing services within its borders to register under the GST framework. Crypto exchanges are subject to GST on services provided to Indian users. Binance became a registered reporting entity in August after paying a fine of $2.25 million for previous non-compliance.
It is noteworthy that Binance has actively supported Indian authorities in tackling crypto crimes. The exchange partnered with India’s Enforcement Directorate in several high-profile cases. Binance helped dismantle operations linked to fraud schemes, including the E-Nugget and Fiewin scams. These cases involved large-scale money laundering activities.
India continues to investigate crypto exchanges and major investors for potential tax evasion and illicit activities. The government’s actions reflect efforts to regulate the fast-growing cryptocurrency market. Binance remains under scrutiny for its role in the Indian crypto sector.
The post Binance Under Fire in India for $85M GST Evasion Allegations appeared first on CryptoTale.
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