Binance has received a show-cause letter from the Directorate General of GST Intelligence (DGGI) in Ahmedabad, demanding payment of INR 722 crores (approximately $86 million) in goods and services tax (GST) for allegedly failing to register and collect GST from Indian users. Reports indicate Binance earned around 4,000 crores ($476 million) from transaction fees, which were deposited in an account of its Seychelles-based subsidiary, Nest Services Limited. This marks the first time the DGGI has targeted a cryptocurrency firm with such a notice, although it has previously taken action against domestic exchanges over tax evasion. Binance is also facing a separate $2.25 million fine from the Financial Intelligence Unit for operational non-registration and is exploring the possibility of returning to India as a compliant platform after being banned earlier this year. The exchange initially entered India by acquiring WazirX but later distanced itself amid legal challenges.
