Foreign crypto exchanges in India may have to pay 18% GST as the government mulls over taxation

  • The Indian government may ask foreign crypto exchanges to pay 18% Goods and Services Tax (GST) on transactions with its citizens.
  • For local crypto exchanges, the 18% tax is usually built into the trading fee charged to customers — akin to how brokerages change conventional stock trading.
  • India was also reportedly mulling over charging a 2% equalisation levy on transactions with foreign crypto exchanges earlier this month.

With the Indian government mulling over new laws to regulate cryptocurrencies in the country, the indirect tax department is looking into whether overseas exchanges need to pay the Goods and Service Tax (GST) at 18%.

The 18% slab is meant for capital goods and industrial intermediaries, among other times, while the highest slab of 28% applies to luxury goods, like automobiles. It’s the same as the tax on brokerage with trading in conventional shares on the stock market.Indian crypto exchanges already charge their users GST. The tax is built into the trading fee that exchanges add to the buying price of Bitcoin, Ethereum and more. The exchanges pay GST to the government as part of their general tax payments.

However, crypto exchanges based outside of India are currently curtailing paying these taxes, according to the Economic Times ( ET).

And, in order to bring them under the tax umbrella, the Indian government could categorise overseas crypto exchanges with Indian users as Online Information Database Access and Retrieval ( OIDAR) services.

source;https://www.businessinsider.in/cryptocurrency/news/foreign-crypto-exchanges-in-india-may-have-to-pay-18-gst-as-the-government-mulls-over-taxation/articleshow/84066450.cms

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