India Could Hit International Crypto Exchanges With Additional 18% Tax: Report

Most Indian exchanges pay the goods and services tax on their profits and commissions in the absence of clarity from the country's tax authority.

AccessTimeIconJul 2, 2021 at 11:48 a.m. UTC
Updated Sep 14, 2021 at 1:20 p.m. UTC

Crypto exchanges that offer services in India may have to pay an additional 18% tax even if they're not based in the country, according to a report by Economic Times (ET).

  • At present almost all exchanges based outside India do not pay the goods and services tax (GST) tax, ET reported Friday.
  • However, the country's tax authority is examining whether they would be subject to the levy, which is paid on all transactions involving goods and services.
  • Most Indian exchanges pay the 18% GST on their profits and commissions in the absence of clarity from the authority.
  • Overseas crypto exchanges may be subject to GST given that they are providing certain "data" services, according to some experts, ET reported.
  • The tax department would categorize crypto exchanges as providing an online information database access and retrieval (OIDAR) service, it said.
  • India appeared in recent months to be moving to an outright ban on crypto. However, there were signs in June that the government would take a more lenient approach and move toward regulating the industry.

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