Indian tax authorities have reportedly asked the country’s major cryptocurrency exchanges to provide information related to coins traded on their platforms. Tax authorities are also assessing the taxability of crypto transactions to determine whether the Goods and Services Tax (GST) can be applied to crypto transactions.
Crypto exchanges in India provide details of coins traded on their platforms to the tax authorities
India’s Central Board of Indirect Taxes and Customs (CBIC) has asked major Indian crypto exchanges to provide details about cryptocurrencies traded on their platforms, Business Standard reported on Friday. A senior official was quoted as saying.
We have had meetings with the crypto exchanges on a wide range of issues related to the asset class. We asked for a detailed report on the different crypto instruments being traded and their respective transaction fees and how they are calculated.
In addition, CBIC is reportedly evaluating the taxability of crypto transactions to determine whether the Goods and Services Tax (GST) can be applied to crypto transactions. Tax officials are also working on the definition and classification of crypto assets.
The representative explained that once they have a better understanding of these crypto products and how they are transacted, it will be easier to determine how GST can be applied to them and their applicable tax rates. The tax authorities gave crypto exchanges until the end of the month to provide the information.
Currently, services provided by crypto exchanges are subject to GST at 18%. In April, the Indian government began imposing a 30% tax on cryptocurrency revenues, and a 1% withholding tax (TDS) on crypto transactions went into effect in July. Last month, the Finance Ministry revealed that it is working on how the GST will be applied to crypto.
The Indian government is currently working on a national crypto policy, with Finance Minister Nirmala Sitharaman saying earlier this month that the government plans to discuss crypto regulations during the G20 presidency in order to establish a technology-driven regulatory framework. A government official reportedly said last month that India plans to finalize its stance on the legality of crypto by the first quarter of next year to comply with standards set by the Financial Action Task Force (FATF).
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