India’s taxation proposal to cryptocurrency

ABR
August 7, 2018

India – the world’s second-largest country by population, is reported to consider to apply consumption tax on cryptocurrency. After months with activities against digital asset, the regulators of this country finally give crypto investors some hopes by eventually accepting cryptocurrency.

According to Bloomberg, India is working on a proposal to levy an 18% Good and Service Tax (GST) on crypto trading. Currently, The Indian Central Board of Indirect Taxes and Customs is considering this proposal and may soon announce the result. If it is approved, GST council will apply it in nationwide scale.

As reported, crypto can be classified as “intangible goods” which is also in the same category with software systems

The value of a transaction will be converted to rupees or an equivalent n freely convertible foreign currency. In case the transaction beyond India, it will be liable for Integrated Good and Service Tax (IGST) and would be considered as import and export activities.

Meanwhile, with crypto mining, all related activities including verifying, transferring, storing and maintain the network shall be treated as supply of service and also have to pay GST in the return commission. Same as oversea crypto transactions, foreign exchange or other activities would be liable for IGST.

With cryptocurrency exchanges having a revenue of 2000 million rupees ($20 million) monthly, it is no doubt that the government has considered as if it was a gold digging. If tax regime is valid from now to the next ten months, it would bring 3600 million Indian Rupees to the Indian government.

Related Article
UK, US Top List of Most Crypto Exchanges by Country followed by Hong Kong and Singapore
Blockchain analytics platform Crystal has revealed a breakdown of the countries with the most regist...

September 22, 2019

TechNode’s Tech After Hours to Discuss Libra, China’s CBDC
Technode is organizing another Tech After Hours discussion on September 25th. This time, it will cov...

September 22, 2019

Five Privacy Coins to be Delisted at OKEx South Korea
The South Korean branch of OKEx has announced it will be delisting privacy coins including Dash and ...

September 21, 2019

Crypto Ranker CoinGecko Upgrades to Trust Score 2.0
Coin exchange ranker, CoinGecko, has upgraded its Trust Score system in a bid to provide the crypto ...

September 21, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us