This is the first time the Indian government is directly taxing a crypto entity in the country.
Binance, alongside other crypto projects, was banned from India in January 2024 for non-compliance with local regulations. However, Binance made public in April its plans to resume operations in the country.
On August 6, the Directorate General of Goods and Service Tax Intelligence (DGGI) an Indian law enforcement agency officially demanded $86 million from Binance under claims of avoiding the Goods and Services Tax (GST)
A source revealed the position of the DGGI saying that Binance earned a sizeable amount of money charging Indian customers for transactions on their platform.
“Binance reportedly earned at least Rs 4,000 crore from transaction fees charged to Indian customers. 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” The source stated.
Following up on the demand, Indian Authorities emailed Binance offices in Seychelles, The Cayman Islands, and Switzerland. The crypto exchange reportedly ignored those messages.
