Own report: The Directorate General of GST Intelligence (DGGI) has discovered widespread tax evasion after conducting investigations against some major cryptocurrency service providers across the country. Saturday, according to a source.
A day after WazirX was fined Rs 49.20 crore for tax evasion, DGGI authorities also searched the office of the cryptocurrency exchange service provider.
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, they said they recovered Rs 49.20 crore in cash, including interest and fines, from the company.
The attack on the cryptocurrency exchange service provider came just months after India decided to enact a law to regulate cryptocurrency. These companies are still unregulated in this country and the amount of investment here is increasing day by day.
Cryptocurrency is basically a digital currency. This is known as block-chain technology. Some popular cryptocurrencies are Bitcoin and Ethereum. Their prices have plummeted since the government listed a bill to regulate cryptocurrency in India.
Cryptocurrency is actually protected by cryptography. It is a complex software coding system. Blockchain technology of cryptocurrency is like a distribution record recorded on a computer network. Transactions in cryptocurrency are recorded on the corresponding blockchain ledger.