Indian Tax Regulator Hits Binance With $87M GST Bill
Global cryptocurrency exchange Binance has been issued a goods and services tax (GST) bill totaling Rs 722 crore (approximately $87 million) by the Indian Directorate General of GST Intelligence (DGGI) in Ahmedabad. This show cause notice requires Binance to pay the GST, marking the first instance of such scrutiny directed at a cryptocurrency firm in India.
Investigation Details
- Earnings: Binance reportedly earned over Rs 4,000 crore from transaction fees charged to Indian customers.
- Earnings Destination: These fees were credited to Nest Services Limited, a Binance Group company based in Seychelles.
- Regulatory Approval: Binance received approval from Indiaâs Financial Intelligence Unit (FIU) earlier this year to register as a virtual asset service provider (VASP).
- Non-Compliance Fine: The FIU imposed an Rs 18.8 crore fine on Binance in June for non-compliance with anti-money laundering regulations.
- GST Registration: Binance has not yet registered under the Indian GST system.
Global Implications
This investigation underscores the increasing regulatory scrutiny cryptocurrency exchanges face globally. Binance has been monitored by various international regulators due to concerns about compliance and transparency. This GST probe in India is a significant development in the ongoing efforts to regulate the rapidly growing cryptocurrency industry.
