Binance slapped with $92 million GST notice in India, marking first-ever crypto exchange scrutiny
The world’s largest crypto exchange, Binance, has been issued a whopping Goods and Services Tax (GST) notice in India, demanding a payment of ₹772 crore (approximately $92 million). The notice was issued by the Ahmedabad zonal unit of the Directorate General of GST Intelligence (DGGI), a government authority responsible for identifying and addressing taxation issues.
The notice stems from a point of investigation in Binance, during which Indian officials attempted to contact the company but received no response to their emails and other communication attempts. This marks the first time a crypto exchange in India has been issued a GST notice.
Government sources familiar with the matter have confirmed the development to Gadgets360. "We at DGGI are tasked with identifying an issue and then sending an official notice. This is done to give the party concerned an opportunity to defend themselves," an official said. "The Bengaluru Commissionerate will oversee the proceedings, as they deal with cases linked to foreign companies operating in India through the internet."
It appears that Binance has not established a physical headquarters, citing a search for locations in their June blog post. There has been no official update from the company in the last three months. In the meantime, an official update from the New Delhi-based DGGI headquarters remains awaited.
This development may come as a surprise to some, but Binance has a history of settlements with governments worldwide. In November 2023, they settled with FinCEN and OFAC on penalties worth $3.4 billion and $968 million, respectively, following violations of US’ anti-money laundering and sanctions laws.
This is not Binance’s first financial settlement with the Indian government either. In June this year, the Financial Intelligence Unit (FIU) imposed a fine of $2.25 million (approximately ₹18.8 crore) on the crypto exchange for failing to adhere to the Prevention of Money Laundering Act, 2002. Binance claimed to have registered with the FIU in May 2023.
While the exact implications of the GST notice on Binance’s business operations in India are unclear, this latest development is undoubtedly a significant milestone for the crypto exchange in the country.
