Despite cryptocurrencies being popular across the country, Indian lawmakers remain deeply divided on implementing an appropriate regulatory framework.
India to reduce GST paid on cryptocurrency exchanges from 18% to 1% through regulatory reclassification
Despite cryptocurrencies being popular across the country, Indian lawmakers remain deeply divided on implementing an appropriate regulatory framework.
[According to a report from CNBC TV18 India], the country’s government thinks to reclassify cryptocurrency exchanges as e-commerce platforms. which will reduce the Goods and Services Taxes (GST) users should spend per transaction to 1%.
Currently, the Indian Government levies an 18% GST on transaction conducted on registered cryptocurrency exchanges, that is passed to users as trading fees. The procedure is similar to the tax protocol of India’s stock brokerages.
However, depending on the legal domicile of the exchange, the new GST proposal could result in more tax responsibilities for certain customers.