India’s Goods and Services Tax (GST) authorities have reported a $99.1 million tax evasion case involving 17 cryptocurrency exchanges operating in the country.

Nest Services Ltd., a company linked to Binance Group, stands out as one of the most significant offenders. The firm is accused of evading $86.8 million in GST.

India Recovers $14.7M in Crypto Tax Crackdown

According to an Economic Times report, Minister of State for Finance Pankaj Chaudhary revealed in a written response to the Lok Sabha that investigations have been launched into these firms.

The investigation has already led to the recovery of $14.7 million in taxes, penalties, and interest, with further recoveries expected as authorities continue their probe. Among the other exchanges under scrutiny, Zanmai Labs Pvt (WazirX) faces allegations of evading $4.9 million, CoinDCX is accused of evading $2 million, and CoinSwitch Kuber is linked to $1.7 million in GST evasion.

The agency is also investigating four crypto investors who were found to have evaded $210,000 in GST. Authorities have already recovered $290,000 from these individuals, covering taxes, penalties, and interest.

Chaudhary also highlighted the government’s growing efforts to regulate the cryptocurrency sector, noting that 47 Virtual Digital Asset Service Providers (VDA SPs) have been registered as Reporting Entities with the Financial Intelligence Unit-India under the Prevention of Money Laundering Act, 2002.

This is not the first instance of the government acting against crypto exchanges. In 2021-22, 11 platforms were penalized for tax evasion, with $1.08 million in unpaid taxes identified. At the time, authorities successfully recovered $1.2 million, including penalties.

Crackdown on Binance’s Tax Evasion

This report comes months after Indian law enforcement agencies demanded around