Binance Fights Back Against $86 Million Tax Penalty in India

The Binance team working very hard against the Tax penalty in the Indian jurisdiction against DGGI body. 

Binance is a top-ranked crypto trading platform that is also popular among Indian crypto traders due to its highly secure and safe trading services. Earlier this year, Binance’s website was not accessible following a ban by the Indian FIU agency. However, just a few months later, Binance resolved the conflict and successfully registered with the FIU, pledging to provide regulated crypto services within Indian jurisdiction.

Latest reports disclosed that Binance is challenging a tax penalty of nearly $86 million imposed by India’s Directorate General of Goods and Services Tax Intelligence (DGGI). The tax issue is related to fees that Binance allegedly collected from Indian traders between July 2017 and March 2024.

A spokesperson for Binance said they are working with Indian authorities. They stated, “We are currently reviewing the details of the notice and are fully cooperating with the Indian tax authorities.”

The DGGI, which is part of the Indian Ministry of Finance, claims that Binance did not pay certain taxes during the mentioned period. This agency usually investigates indirect tax evasion and has previously targeted Indian crypto exchanges. However, this is the first time it has issued a notice to an foreign crypto platform like Binance.

The notice was sent by the DGGI’s Ahmedabad branch as a formal action when they suspected tax rule violations. The Binance spokesperson emphasised, “Binance is, and has always been, committed to adhering to relevant domestic legislations applicable to us (exchange).”

In late 2023, India took strong action against cryptocurrency exchanges, including Binance, by restricting local access to international platforms. Major tech companies like Apple and Google removed Binance and similar apps from their platforms in India following government orders.

Many are wondering if India has a negative view of cryptocurrencies, especially with these strict measures in place. Currently, all crypto traders and businesses are paying a 30% tax on the profits generated from each crypto transaction.

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