India’s government has unveiled significant cases of crypto tax evasion by leading cryptocurrency firms, including Binance and WazirX, as part of a broader crackdown on compliance in the sector.

The Indian Ministry of Finance reported the discovery of ₹824 crore ($97 million) in unpaid Goods and Services Tax (GST) across 17 crypto firms. Notable entities on the list include Binance, WazirX, CoinDCX, and CoinSwitch Kuber.

₹122 Crore Recovered So Far

Crypto firms accused of GST tax evasion in India, with penalty and interest recovery. Source: Sansad.in

Out of the total unpaid amount, authorities have successfully recovered ₹122.3 crore ($14 million) through penalties, taxes, and interest. WazirX has already settled its dues, paying ₹49.18 crore ($5.8 million) — 20% more than its initial tax liability of ₹40.5 crore ($4.8 million).

Binance Yet to Settle ₹722 Crore

Binance, however, remains non-compliant, with a massive 722 crore ($85 million) GST liability still outstanding. Despite this, the company claims to be cooperating with Indian regulators and addressing tax concerns through hearings and inquiries.

Ongoing Investigations and New Registrations

The crackdown includes investigations into multiple exchanges for violations, such as GST evasion. Additionally, the government has registered 47 virtual digital asset service providers under India’s Anti-Money Laundering laws, ensuring stricter oversight of the sector.

WazirX defended its position, stating that the alleged evasion occurred when GST laws around cryptocurrencies were unclear in India. This highlights the regulatory challenges in adapting taxation frameworks for emerging technologies.

India’s proactive measures signal its commitment to ensuring compliance and transparency in the growing crypto industry.