India’s tax authority is said to have asked major crypto exchanges in the country to provide information regarding the coins traded on their platforms. Tax authorities are also assessing the taxability of cryptocurrency transactions to determine if goods and services tax (GST) can be imposed on them.
India’s Cryptocurrency Exchanges to Provide Details of Amounts Traded on Their Platforms to Tax Authorities
The Central Commission of Taxation and Customs of India (CBIC) has asked major Indian crypto exchanges to provide detailed information on the cryptocurrencies traded on their platforms, Business Standard reported on Friday. A senior official is quoted as saying:
We have had meetings with crypto exchanges on broad issues related to the asset class. We sought a detailed report on the various crypto products being traded and their respective transaction fees and how they are calculated.
Additionally, the CBIC is reportedly assessing the taxability of cryptocurrency transactions to determine if goods and services tax (GST) can be imposed on them. Tax authorities are also working on the definition and classification of crypto assets.
The official explained that with a better understanding of these crypto products and how they are traded, it would be easier to determine how GST might apply to them and their applicable tax rates. The tax authority has allowed crypto exchanges to provide information until the end of this month.
Currently, an 18% GST is levied on services provided by cryptocurrency exchanges. The Government of India started levying crypto income tax at 30% in April and the 1% tax withheld at source (TDS) for crypto transactions came into effect in July. Last month , the Ministry of Finance revealed that it is working on how GST can be applied to cryptocurrencies.
The Indian government is currently working on the country’s cryptocurrency policy. Finance Minister Nirmala Sitharaman said earlier this month that the government plans to discuss cryptocurrency regulation during its G20 Presidency to establish a technology-based regulatory framework. A government official reported last month that India plans to finalize its stance on the legality of cryptocurrencies by the first quarter of next year to comply with the standards set by the Financial Action Task Force (FATF).
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