The Directorate General of GST Intelligence (DGGI) found massive tax evasion after conducting searches at some major cryptocurrency service providers across the country, sources said on Saturday.
DGGI authorities also searched the premises linked to Cryptocurrency exchange service provider WazirX, a day after the company was fined Rs 49.20 crore for evading legal taxes.
The GST Mumbai (East Commissionerate Zone), while investigating the business activities of cryptocurrency exchange WazirX, detected GST evasion of Rs 40.5 crore. In a statement, the agency said that they have recovered Rs 49.20 crore in cash from the firm which includes interest and penalty.
The crackdown on cryptocurrency exchange service provider came months after India decided to bringing a law to regulate cryptocurrency, which is till date unregulated in the country with a growing investment in this form of currency.
A cryptocurrency is essentially a digital currency. It is available on what is called block-chain technology. Some of the popular cryptocurrencies are Bitcoin and Ethereum. Their prices have incidentally crashed after the government listed a bill to regulate cryptocurrency in India.
Cryptocurrency is secured by cryptography, a complex software coding system. Blockchain technology of cryptocurrency could be understood as a distribute ledger that is recorded on a network of computers. Transactions in cryptocurrencies are recorded on respective blockchain ledgers.