Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
India’s GST Intelligence Unit Issues Notice to Binance, Demanding Tax Payment: Sources

India’s GST Intelligence Unit Issues Notice to Binance, Demanding Tax Payment: Sources

Cryptonews2024/08/05 16:00
By:Sujha Sundararajan
India’s GST Intelligence Unit Issues Notice to Binance, Demanding Tax Payment: Sources image 0

Global crypto exchange behemoth Binance is reportedly facing goods and service tax (GST) issues in India, according to sources.

The zonal unit of the Directorate General of GST Intelligence (DGGI) of Ahmedabad, has issued a show cause letter to the exchange demanding 7.22 billion rupees ($86 million) under GST.

The move is aimed at regulating the digital currency market, per a report from the Times of India .

Binance reportedly collected fees from Indian users for trading virtual digital assets (VDAs) on their platform. As a result, the notice was issued under the online information database access or retrieval (OIDAR) services.

OIDAR under GST refer to services delivered over the internet with minimal human intervention. Such services are subject to specific rules and regulations under the GST regime in India.

“Binance reportedly earned at least 40 billion rupees ($476.8 million) from transaction fees charged to Indian customers,” a top source close to the development, told the publication.

“Detailed investigations revealed that the earnings of these fees were credited to the account of a Binance Group Company – Nest Services Limited – based in Seychelles.”

Binance’s Tax Compliance Issue


Further, the zonal GST intelligence arm sent emails to Binance group companies in Seychelles, the Cayman Islands and Switzerland, to make the exchange GST compliant. However, DGGI did not receive a response from Binance and its affiliated companies, the report added.

Sources confirmed that Binance later appointed a local counsel to liaise with the DGGI on the tax compliant issue.

In May, the Financial Intelligence Unit of India (FIU) revealed that Binance has successfully registered with the regulatory body. However, the company faced fine of 188.2 million rupees ($2.25 million) for non-compliance with local anti-money laundering (AML) regulations.

Following Binance’s tax non-compliance, the DGGI is also closely monitoring financial transactions and activities of online gaming platforms and marketplaces.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

MARA's stock jumps after raising $1 billion via convertible notes to buy more bitcoin

MARA Holdings announced the successful closing of its $1 billion offering of 0% convertible senior notes due 2030.The bitcoin miner plans to allocate around $199 million of the proceeds to repurchase $212 million in principal of its existing convertible notes due 2026. The remaining funds will be used to acquire more bitcoin.

The Block2024/11/21 16:11

Gold loses luster as institutional demand fuels bitcoin price surge, analysts say

Bitcoin’s 46% surge over the past month, contrasted with gold’s 3% decline, highlights a shifting investor preference toward alternative store-of-value assets, analysts say.Derivatives traders are buying up bitcoin call options ahead of Trump’s inauguration, signaling strong bullish sentiment for the beginning of 2024.

The Block2024/11/21 16:11

SEC is 'engaging' Solana ETF applicants: report

SEC “engaging” on Solana ETF applications, sparking optimism for potential approval in 2025.VanEck, 21Shares, and Bitwise lead Solana ETF filings amid pro-crypto White House hopes.SOL token rises 4.6% to $247.91, bolstered by Solana’s strong DeFi ecosystem and demand.

The Block2024/11/21 16:11