A day after Central GST wing from Mumbai took action against tax evasion by WazirX, the Directorate General of GST Intelligence (DGGI) took follow-up action against four cryptocurrency players, sources told CNBC-TV18.

As per the sources, the DGGI has detected and made immediate recovery of tax evaded to the tune of Rs 30 crore, collectively by Bitcipher Labs LLP (CoinSwitch Kuber), Neblio Technologies Pvt Ltd (CoinDCX), I Block Technologies Pvt Ltd (BuyUCoin) and Unocoin Technologies Pvt Ltd (Unocoin) on December 31, 2021.

Sources said the entities in question evaded tax on services provided as an intermediary, which attract a GST of 18%. Sources said the arrears were recovered in the form of cash, including interest and penalty.

"These taxpayers were facilitating sale/purchase of cryptocurrency through their online platforms and in lieu thereof were charging commission on these transactions. However, it was gathered that they were not paying GST on such commission. Inspection of their premises were carried out on December 31, 2021, and on being confronted with the fact of non-payment of GST on the commission amount, they deposited GST on the commission amount along with applicable interest and penalty,” sources in the know of the matter told CNBC-TV18.

On Thursday, the Mumbai GST Commissionerate detected tax evasion to the tune of Rs40.5 crore by WazirX. Central Board of Indirect taxes and customs in a press release said the commissionerate has recovered Rs 49.20 crore in cash, including interest and penalty, from the cryptocurrency exchange.

WazirX is managed by Zanmai Labs Pvt Ltd, and the cryptocurrency 'WRX' is owned by Binance Investment Co Ltd, based in the Seychelles. WazirX was registered as Zanmai Labs in December 2017 as a domestic cryptocurrency startup.

The press release added that the firm charges commission on each transaction in cryptocurrency from buyer and seller both. But the rate of commission is different — a transaction in rupees attracts a 0.2% commission, while a transaction in WRX attracts a 0.1% commission.

During the investigation, the Commissionerate noticed that the firm collected revenue from commission as trading fees, deposit fees and withdrawal fees, and paid GST only on commission earned in rupees.

The press release also added that further investigation is in progress and that the WazirX case is part of the special anti-tax evasion drive, which relies on intensive data mining and data analytics, initiated by the CGST Mumbai Zone.

(Edited by : Vijay Anand)