Binance Receives GST Notice in India for Rs. 772 Crore Payment

Binance, the world’s largest crypto exchange, has been issued a notice in India demanding a Goods and Services Tax (GST) payment of Rs. 772 crore (about $92 million). The Ahmedabad zonal unit of India’s Directorate General of GST Intelligence (DGGI) issued this notice. Although an official statement from the government is awaited, sources confirmed the development to Gadgets360.
Binance faces this large GST demand for charging fees to Indian traders, amounting to at least Rs. 4,000 crore, which was then transferred to a foreign company. The Ahmedabad DGGI unit investigated Binance and tried to contact the company that received the funds. However, Indian officials received no response to their emails or other communication attempts.
An official told Gadgets360 that the notice should be seen as an opportunity for Binance to present their case and align their business operations with India’s legal framework. “DGGI identifies an issue and sends a notice to allow the concerned party to defend themselves. From here, adjudicating authorities will oversee the proceedings. In this case, the Bengaluru Commissionerate will handle it because it deals with cases linked to foreign companies operating in India only through an Internet presence,” the official said anonymously.
Despite being founded in San Francisco, Binance currently has no physical headquarters. A June blog post from the company mentioned they were scouting for locations. There has been no official update from Binance in the last three months.
An official update from the New Delhi-based DGGI headquarters on this matter is still awaited, and Binance has not yet reacted to the notice.
This is reportedly the first time a GST notice has been issued to a crypto exchange in India. However, Binance is not new to financial settlements with governments. In November 2023, Binance settled with FinCEN and OFAC for penalties of $3.4 billion and $968 million, respectively, for violating US anti-money laundering and sanctions laws.
Binance’s history in India has also been problematic. In June, India’s Financial Intelligence Unit (FIU) fined Binance $2.25 million for not adhering to the Prevention of Money Laundering Act, 2002 (PMLA). Binance claimed to have registered with the FIU in May this year.
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