Binance tops list of 17 crypto entities probed for tax evasion in India

Binance accounted for the highest Goods and Service Tax evasion among registered cryptocurrency exchanges in India, according to the Indian Finance Ministry.

Responding to a parliamentary question regarding tax compliance by cryptocurrency exchanges, Minister of State for Finance Pankaj Chaudhary revealed that the total GST evasion by these entities amounted to ₹824.14 crore ($96 million), with a Binance group company contributing the majority share.

According to the ministry, 47 Virtual Digital Asset Service Providers have registered as reporting entities under the Financial Intelligence Unit, out of which 17 entities were investigated for GST evasion.

Nest Services Limited, a Binance Group company based in Seychelles, evaded GST amounting to inr 722.43 crore (roughly $85 million), making it the largest contributor to the total evasion identified by the Indian Finance Ministry.

The next biggest GST evader was WazirX, operated by Zanmai Labs Pvt. Ltd., which was found to have evaded ₹40.51 crore. The platform was hacked in July and lost $235 million worth of funds.

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The government has managed to recover a total of ₹122.29 crore from all entities combined, including interest and penalties. In contrast, no recovery has been made so far from the Binance-linked entity despite its significantly larger evasion amount.

The GST is a nationwide indirect tax applied to the manufacture, sale, and consumption of goods and services. Foreign entities providing services in India are required to register under the GST framework and comply with tax obligations.

As previously reported by crypto.news, the Directorate General of GST Intelligence of Ahmedabad sent a show-cause letter to Nest Services in August after it found that the fees collected from Binance’s operations were deposited in accounts controlled by the company.

The DGGI alleged that Binance earned at least 4,000 crores, approximately $476 million, from transaction fees before it was asked to halt services and complete registration.

Binance complied and became a registered reporting entity under the Financial Intelligence Unit in August after paying a $2.25 million fine for operating without a license.

To address the tax evasion issue, Binance has reportedly appointed a representative to liaise with the agency. Meanwhile, the exchange has been actively assisting Indian law enforcement in cracking down on illicit activities.

Read more: Binance completes registration with India’s financial intel

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