Lok Sabha Question No. 966 (UNSTARRED), answered on 2024-12-02
Subject: GST Evasion by Cryptocurrency Exchanges
Ministry: FINANCE
Asked by: Shri Narayan Tatu Rane

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTEMENT OF REVENUE

## LOK SABHA UN-STARRED QUESTION NO. 966

## TO BE ANSWERED ON MONDAY, THE 02 ND  DECEMBER, 2024 AGRAHAYANA 11, 1946 (SAKA)

## GST Evasion by Cryptocurrency Exchanges

## 966. SHRI NARAYAN TATU RANE:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  Government  has  any  data  regarding  the  number  of  cryptocurrency exchanges currently involved in cryptocurrency exchange business in the country;
- (b) if so, the details thereof;
- (c)  whether  some  cryptocurrency  exchanges  were  involved  in  evasion  of  Goods  and Services  Tax  (GST)  and  whether  other  cryptocurrency  exchanges  and  major  investors  in digital currency are also under investigation by the Government;
- (d) if so, the details thereof; and
- (e)  the  details  of  action  taken  or  proposed  to  be  taken  by  the  Government  against cryptocurrency exchanges involved in GST evasion?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) & (b): Total 47 Virtual Digital Asset Service Providers (VDA SPs) have been registered as Reporting  Entities  with  Financial  Intelligence  Unit-India  under  the  Prevention  of  Moneylaundering Act, 2002 till date. Details are enclosed as Annexure-A.
- (c)  &  (d):  Few  cases  of  evasion  of  Goods  and  Services  Tax  (GST)  by  cryptocurrency exchanges and investors have been detected by Central GST formations as given below:
- (e):  The  details  of  cases  booked  against  cryptocurrency  exchanges  for  GST  evasion  and action taken by Government are enclosed as Annexure-B.

|   No. of Crypto Exchange Investigated |   Quantum of evasion detected (In Cr.) |   Recovery (In Cr.)(including interest &penalty) |
|---------------------------------------|----------------------------------------|--------------------------------------------------|
|                                    17 |                                 824.14 |                                           122.29 |

|   No. of investors in virtual assets investigated |   Quantum of evasion detected (In Cr.) |   Recovery (In Cr.)(including interest &penalty) |
|---------------------------------------------------|----------------------------------------|--------------------------------------------------|
|                                                 4 |                                   1.76 |                                              2.4 |

## Details of 47 Virtual Digital Asset Service Providers (VDA SPs) Registered with Financial Intelligence Unit-India (FIU-IND)

|   S. No | RE Name                                  | Trade Name          |
|---------|------------------------------------------|---------------------|
|       1 | Neblio Technologies Private Limited      | Coin DCX            |
|       2 | ANQ Digital Finserv Private Limited      | ANQ Finance         |
|       3 | Unocoin Technologies Pvt Ltd             | Unocoin             |
|       4 | Buyhatke Internet Private Limited        | Onramp              |
|       5 | Giottus Technologies Pvt Ltd             | Giottus             |
|       6 | Bitbns Internet Private Limited          | Bitbns              |
|       7 | Awlencan Innovations India Limited       | Zebpay              |
|       8 | Zanmai Labs Pvt Ltd                      | WazirX              |
|       9 | Bitcipher Labs LLP                       | Coinswitch          |
|      10 | Nextgendev Solutions Private Limited     | CoinswitchX         |
|      11 | RPFAS Technologies Pvt Ltd               | Mudrex              |
|      12 | IBLOCK Technologies Pvt Ltd              | Buyucoin            |
|      13 | WOLLFISH Labs Pvt Ltd                    | Coindhan            |
|      14 | Rario Digital Private Limited            | Rario               |
|      15 | Angelic Infotech Pvt Ltd                 | Suncrypto           |
|      16 | Carretx Technologies Pvt Ltd             | Carret              |
|      17 | Ante Multimedia Pvt Ltd                  | -                   |
|      18 | ABHIBHA Technologies Pvt Ltd             | Onmeta              |
|      19 | Smartliving Digital Technologies Pvt Ltd | Cryptosmartlife     |
|      20 | UCY Technology Pvt Ltd                   | Pyor                |
|      21 | Digital Collectibles Pte Ltd             | Rario               |
|      22 | Veeratva Technologies Pvt Ltd            | Vair                |
|      23 | Transak Technology India Pvt Ltd         | Transak             |
|      24 | REMIZO Technologies India Pvt Ltd        | Getbit              |
|      25 | FIN GENIE Tech Pvt Ltd                   | Bytex               |
|      26 | ARDOUR labs Pvt Ltd                      | -                   |
|      27 | Inocyx Technologies Pvt Ltd              | Inocyx              |
|      28 | Metatoken Technologies Pvt Ltd           | Fanztar             |
|      29 | Excellium Technologies Pvt Ltd           | Delta Exchange      |
|      30 | Rovi91 Innovations Pvt Ltd               | -                   |
|      31 | Longreen India Pvt Ltd                   | Bitbse.com          |
|      32 | Flitpay Pvt Ltd                          | Flitpay             |
|      33 | Fincrypt LLP                             | Stable Pay          |
|      34 | Arthbit Pvt Ltd                          | ArthBit             |
|      35 | Pagarpay India Pvt Ltd                   | Density Exchange    |
|      36 | Lightningnodes Technologies Pvt Ltd      | pi42                |
|      37 | Kooz Advisors and Technologies Pvt Ltd   | KoinBX              |
|      38 | Mindless Pandora Tech Solutions Pvt Ltd  | -                   |
|      39 | FanzCraze Technologies Inc               | -                   |
|      40 | SUBHX Infotech (OPC) Pvt Ltd             | BIT24HR             |
|      41 | Peken Global Ltd                         | KuCoin              |
|      42 | ALSD Technologies Pvt Ltd                | Alpyne              |
|      43 | Damsol Pvt Ltd                           | Square              |
|      44 | First Answer India Technologies Pvt Ltd  | Liminal             |
|      45 | Eclipton Technologies Pvt Ltd            | Eclipton            |
|      46 | Blockoville OU                           | Blockoville Binance |
|      47 | Binance International Limited            |                     |

## Details of cases booked against cryptocurrency exchanges for GST evasion

| Sl. No.   | Name of the Crypto exchange booked                                     |   Quantum of evasion detected (In Cr.) |   Recovery (In Cr.)(including interest & penalty) |
|-----------|------------------------------------------------------------------------|----------------------------------------|---------------------------------------------------|
| 1         | Mether ITeS (metherworld.org)                                          |                                   1    |                                              1.25 |
| 2         | Skysharp IT Solutions Pvt Ltd (earlier Secure Bitcoin Traders Pvt Ltd) |                                   0.54 |                                              0.3  |
| 3         | Longreen India Pvt Ltd (bitbse)                                        |                                   0.12 |                                              0.16 |
| 4         | CoinDCX                                                                |                                  16.84 |                                             20.86 |
| 5         | BuyUcoin                                                               |                                   1.13 |                                              1.56 |
| 6         | CoinSwitch Kuber                                                       |                                  14.13 |                                             19.38 |
| 7         | UnoCoin                                                                |                                   3.77 |                                              5.82 |
| 8         | Flitpay                                                                |                                   0.05 |                                              0.06 |
| 9         | Zeb IT Services Pvt Ltd                                                |                                   0.46 |                                              0.55 |
| 10        | Gioutts Technologies Pvt Ltd                                           |                                   3.85 |                                              5.31 |
| 11        | Awlencan Innocations India Ltd (ZEBPAY)                                |                                   7    |                                             10.63 |
| 12        | Flipvolt Technologies Pvt Ltd                                          |                                   1.68 |                                              4.39 |
| 13        | M/s Nest Services Limited (a Binance Group Company)                    |                                 722.43 |                                              0    |
| 14        | M/s Nebilo Technologies Pvt Ltd. (Crypto Trading operated: CoinDCX)    |                                   9.79 |                                              1.75 |
| 15        | M/s. Zanmai Labs Pvt. Ltd. (WAZIRX)                                    |                                  40.51 |                                             49.18 |
| 16        | M/s. Discidium Internet Labs Pvt. Ltd.                                 |                                   0.64 |                                              1.09 |
| 17        | Hyperux Technologies                                                   |                                   0.2  |                                              0    |
|           | Total                                                                  |                                 824.14 |                                            122.29 |