Sunday, February 5, 2023

India Plans To Charge Foreign Crypto Exchanges With 18% GST

As the Indian Government considers framing new laws to regulate cryptocurrency in the country, the indirect tax department explores whether the foreign crypto exchanges should pay a Goods and Service Tax (GST) of 18 percent. 

The 18 percent slab is imposed on capital goods and industrial intermediaries, while a 28 percent slab, which is considered to be the highest, is established on luxurious goods like automobiles.  

According to Economic Times, an Indian English language business-focused news outlet, while the Indian crypto exchanges pay GST to the government, the foreign exchanges have been cut short from it. 

The customers on Indian crypto exchanges are charged with GST. While buying any cryptocurrency from the platform, the customers had to pay a trading fee which is used as a GST. The GST paid to the government by the crypto exchanges is considered to be a part of their general tax. 

As per the report, the Indian Government is planning to categorize the foreign crypto exchanges with Indian users to bring them under the tax umbrella. This category would be known as Online Information Database Access and Retrieval (OIDAR) Services.

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