India Might Provide TAX Relief to Cryptocurrency Exchanges in India

Despite the growing recognition of cryptocurrencies in India, lawmakers continue to be deeply divided on implementing an applicable regulatory framework.

According to various trusted sources in India, the nation’s government plans to reclassify cryptocurrency exchanges as e-commerce platforms, which will minimize the Goods and Services Taxes (GST) customers should pay per transaction, or per trade, to 1%.

Currently, the Indian Government levies an 18% GST on transactions conducted on registered cryptocurrency exchanges, which is surpassed to users as trading fees. The manner is similar to the tax protocol of India’s stock brokerages.

However, depending on the felony domicile of the exchange, the new GST proposal could end in more tax liabilities. Back in July, Business Insider India pronounced that the government may ask overseas cryptocurrency exchanges to cost the same 18% GST as domestic equivalents to their customers when conducting commercial enterprise with Indian nationals. Overseas crypto exchanges are typically exempt from GST registration in India, ensuing in a great tax gap between customers of unique exchanges.

Indian lawmakers remain sharply divided by way of the development of a regulatory framework for cryptocurrencies in the country. Proposed law tiers from classifying cryptocurrencies as commodities to outright bans on the trading of digital assets. Last year, the Supreme Court of India struck down the Reserve Bank of India’s ban, which prohibited banks from conducting business with cryptocurrency firms.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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