India Could Hit International Crypto Exchanges With Additional 18% Tax

Crypto exchanges that offer services in India may have to pay an additional 18% tax even if theyre 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.

However, the countrys 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.

Stay tuned!