The Directorate General of GST Intelligence (DGGI) on Saturday detected huge tax evasion after carrying out searches at some major cryptocurrency service providers across the country.
DGGI authorities also conducted a search at the premises linked to crypto exchange service provider WazirX, a day after the company was fined Rs 49.20 crore for eluding legal taxes, Indiatoday reported.
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The GST Mumbai (Ease Commissionerate Zone), while probing the business activities of WazirX, identified GST evasion of Rs 40.5 crore.
The agency, in a statement, said they have recovered Rs 49.20 crore in cash from the company which comprises interest and penalty.
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The crackdown on WazirX came months after the government decided to bring in a law to regulate cryptocurrency, which is to date unregulated in India with rising investment in this form of currency.
Some of the well-known cryptocurrencies are Bitcoin and Ethereum. The prices of these virtual currencies have incidentally crashed after the government listed a bill to regulate cryptocurrency in the country.