GST hit Binance reiterates pledge to comply with Indian rules

Binance is currently eyeing a GST payment of Rs. 772 crore in India. In an official statement shared with Gadgets360, the cryptocurrency exchange once again reiterated its intentions to strive for compliance with Indian laws following this fresh run-in with the country’s Directorate General of GST Intelligence (DGGI). Earlier this year, the exchange was temporarily suspended in India for not being a registered entity with the Financial Intelligence Unit (FIU).

“We are aware of certain media reports circulating regarding tax returns being issued by Indian GST authorities to global crypto platforms. We would like to clarify that Binance has always been committed to complying with the relevant national laws that apply to us,” a Binance spokesperson told Gadgets360.

The Ahmedabad zonal unit of the DGGI has issued this GST notice to Binance this week. The exchange is facing the hefty GST payment as it Reportedly charged its Indian users a platform fee totaling Rs 40 billion, with all funds being transferred to an offshore account linked to a group company.

“We are fully cooperating with Indian authorities to address any concerns. Binance remains committed to maintaining the highest standards of compliance and transparency in the industry,” the company spokesperson added.

Despite previous assurances of compliance with Indian laws, Binance was recently fined $2.25 million for violating India’s anti-money laundering regulations. The fine was imposed in June, a month after Binance claimed to have registered with the FIU in May. At the time, the company also pledged to cooperate with Indian authorities.

So far, the company has not provided any additional information on the situation at the DGGI in India.

According to DGGI officials familiar with the matter, the Bengaluru Commissionerate will act as the deciding authority as this office has been designated to handle cases relating to foreign companies without physical offices in India.