GST wing finds evasion by cryptocurrency exchange

Chennai: The GST authorities in Mumbai have detected evasion of 40.5 crore and recovered 49.2 crore in cash linked to GST evaded, interest and penalty while investigating the business activities of cryptocurrency exchange WazirX. WazirX exchange is managed by

Zanmai Labs

while the cryptocurrency ‘

WRX

’ it deals with is owned by Seychelles-based

Binance Investment

. WazirX was registered as Zanmai Labs in December 2017 as a domestic cryptocurrency startup. A government statement said the firm charges a commission on each transaction in cryptocurrency from both buyer and seller. Traders can transact in rupee or WRX which are purchased from the WazirX platform. Transaction in rupee attracts a commission of 0.2% and transaction in WRX attracts a commission of 0.1%. However, it paid GST only on commission earned in rupees and not on commission earned in WRX. “GST at the rate of 18% is applicable on these transaction fees. As such, GST of 40.5 crore was not paid, which was paid along with interest and penalty on 30.12.21. Total 49.2 crore has been recovered on the spot from WazirX. Further investigation is in progress,” the statement said.Full report on www.toi.in