India’s taxation proposal to cryptocurrency

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
Stablecoin: What you need to know
Stablecoins directly backed by fiat currencies or commodities are said to be centralized, whereas th...

May 25, 2019

South Korea Authorizes 9 Fintech Startups, Companies for Sandbox
South Korea has approved 9 fintech firms for its regulatory sandbox, as the country moves to take th...

May 25, 2019

Singapore’s Regulator Considers Licenses for Digital-Only Bank
The Monetary Authority of Singapore is reportedly considering digital-only licenses for online banks...

May 25, 2019

Blockchain-powered Ride-sharing Service Launches in Cambodia
With stiff competition among ride-hailing apps in Southeast Asia, a Singaporean ride-sharing app has...

May 24, 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