India Demands $86 Million from Binance for GST Non-Compliance
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India’s DGGI has demanded ₹722 crore ($86M) from Binance for failing to comply with GST regulations. Binance is charged with collecting ₹4,000 crore ($476M) in trading fees from Indian users without GST registration. India’s Directorate General of Goods and Services Tax Intelligence (DGGI) has issued a show cause notice to Binance, one of the world’s largest cryptocurrency exchanges. The notice demands a payment of ₹722 crore ($86 million) in Goods and Services Tax (GST), marking a pivotal move in the regulation of the burgeoning crypto sector in India. 📢Indian Directorate General of GST Intelligence (DGGI) imposes @binance with GST fees of $86.01M❗️ The Ahmedabad DGGI issued a show-cause notice stating the fees worth 722 crore in INR. 🇮🇳 📌This is the first time the regulatory body has approached a #crypto firm. pic.twitter.com/HXF4qhWqX3 — TheNewsCrypto (@The_NewsCrypto) August 6, 2024 The notice alleges that Binance earned approximately ₹4,000 crore ($476 million) in trading fees from Indian users without sticking to the Indian GST registration requirements. The DGGI’s notice to Binance is the first tax demand imposed by the Indian government on cryptocurrency firms. Despite its significant international presence and operations across over 150 countries, Binance had not registered under India’s GST framework. To address this issue, the DGGI reached out to Binance’s associated companies in the Seychelles, the Cayman Islands, and Switzerland. But they did not receive any response. Later, Binance appointed a local legal representative in India to collaborate with the DGGI and resolve the tax compliance issue. Binance’s Compliance Struggles and Regulatory Actions in India Binance, which operates on a global scale and holds a significant market share, was banned in India earlier this year due to non-compliance with local regulations. However, in April, the company announced its plan to resume operations in India, provided it met its outstanding tax…
Filed under: News - @ August 6, 2024 6:26 pm