Binance, the world\'s largest crypto exchange, gets Rs 722 crore GST from DGGI
In a groundbreaking move, the Ahmedabad zonal unit of the Directorate General of GST Intelligence (DGGI) has issued a show cause notice to Binance, the world’s largest cryptocurrency exchange, demanding Goods and Services Tax (GST) payment of Rs 722 crore. This marks the first time the DGGI has issued such a notice to a cryptocurrency firm, setting a significant precedent in India’s efforts to regulate the rapidly growing virtual currency market.
Sources confirmed that the notice was issued to Binance for collecting fees from Indian customers trading in virtual digital assets (VDAs) on their platform, categorized under online information database access or retrieval (OIDAR) services.
Earlier this year, Binance received approval from India’s Financial Intelligence Unit (FIU) to register as a virtual asset service provider (VASP). However, the company was slapped with a Rs 18 crore penalty from the FIU last month for non-compliance with anti-money laundering (AML) regulations.
Despite being a major player in the global cryptocurrency market, with at least 40% market share and operations across more than 150 countries, Binance had not registered under the Indian GST framework. This oversight has now brought the company under the scrutiny of Indian tax authorities.
