Crypto exchange WazirX dodged Rs 40.5 crore in tax, says GST department

The Goods and Services Tax (GST) department has begun an investigation into the activities of cryptocurrency exchange WazirX for allegedly evading Rs 40.5 crore in tax. Late on Thursday evening, the tax department recovered Rs 49.2 crore from the company — the GST owed plus interest and penalties.

The indirect tax department said that WazirX issued its own cryptocurrency — WRX coins — through Zanmai Labs but did not pay GST on it. The tax department contended that GST of 18% was applicable on these coins.

Zanmai Labs, the tax department said, was managing WazirX’s cryptocurrency exchange application in India. Both WazirX and its WRX coins are owned by Binance Investments, a Seychelles-based entity, the tax department said.

Investigators said that WazirX allowed trading and investment in crypto assets such as Bitcoins in two ways — using Indian rupees or WRX coins.