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Thursday, February 2, 2023

Report: India Could Impose New 18% Taxes On Cryptocurrency Exchanges Overseas.

Economic Times (ET) report indicates that cryptocurrency exchanges that operate in India could be required to pay an additional 18% tax, regardless of their location.

  • The Goods and Services Tax (GST) is not paid by almost all exchanges based outside India, ET reported on Friday.
  • However, the country’s tax authority examines whether they would be subject to the levy paid on all goods and services transactions.
  • India’s exchanges pay 18% GST on their profits and commissions without any clarification from the government.
  • ET reported that some experts believe overseas crypto exchanges are subject to GST since they provide certain “data” services.
  • According to the tax department, crypto exchanges would be considered a provider of an online information database access and retrieval (OIDAR) service.
  • In recent months, India appeared to be moving toward an outright ban on crypto. However, there were signs in June that the government would take a more lenient approach and regulate the industry.
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