Indian law enforcement agencies demanded $86 million (722 crore Indian rupees) in unpaid taxes from crypto exchange Binance.
Binance, along with numerous other offshore crypto exchanges, was banned in India in January 2024 for noncompliance with local regulations. However, in April, Binance revealed its intent to restart its crypto trading operations in the region after paying pending taxes.
On Aug. 6, the Directorate General of Goods and Service Tax Intelligence (DGGI) — an Indian law enforcement agency — demanded 86 million from Binance under the Goods and Services Tax (GST), according to The Times of India.
The DGGI notice to Binance is the first tax demand levied by the Indian government on any crypto exchange.
Crypto tax obligations in India
Indian law requires all crypto service providers and investors to pay a 1% TDS on every crypto transaction, irrespective of its value. In addition, all profits booked on crypto investments attract a 30% tax.
While Indian crypto exchanges, such as WazirX and CoinDCX, had implemented internal systems to simplify tax obligations for their user base, offshore exchanges failed to enforce the requirement at the time.
This is a developing story, and further information will be added as it becomes available.