India has been undecided about taxation of cryptocurrency transactions for almost a year. Indeed, the State has long wanted to tax them, but must first assess their “taxability”. As part of this, national tax authorities need a major platform to provide information about tokens traded on their exchanges.
According to a senior executive, Central Board of Indirect Taxes and Customs (CBIC) India is working on this issue with the aim of determining whether a Goods and Services Tax, commonly known as “GST” can be applied to cryptocurrencies. And in this context, platforms have until the end of November to respond for inquiries from this tax administration.
“We have held meetings with crypto exchanges on high-profile issues regarding asset classes. We ask for detailed reports on the various crypto products traded, their respective transaction fees, and how they are calculated. »
Senior executive Indian.
The tax authority assesses the taxable transactions
As mentioned, ask information aimed at assessing the taxability of cryptocurrency transactions. Specifically to see how to apply GST and what the rate is. It should be noted that Indian local platforms are already subject to a tax in total 18% charged for the services they provide.
In fact, in early April, the Indian government confirmed in the press his desire to tax this digital economy. In this context, a second tax was introduced in July in the form of a 1% withholding tax (TDS) on transactions.
In addition to determining the taxability of cryptocurrency transactions, CBIC also considers a this legal definition and classification. A question to be answered at the G20 meeting to be held on 15 and 16 November in Bali. Because it seems important to remember that India is in G20 presidency since December 1, 2021. Therefore, this 17th Summit has a dominant role to play during this 17th Summit which will start in two weeks.
Above all, we already know that the Indian government intends to comply with the standards set by the Financial Action Task Force (FATF). And if India changes its laws, more than 100 million cryptocurrency users will be directly affected. Because this country is currently the largest in the world.
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