Goods and service tax (GST) on crypto is now being considered by the Indian government according to a report.
Bloomberg reported an 18 percent fee might be imposed by the government on cryptocurrency trading. This is after the Reserve Bank of India prohibited banks from doing business with crypto trading platforms.
The tax proposal explains that purchases of cryptocurrencies are regarded as the sale of goods, therefore taxable. The computation of the cryptocurrency transaction would be based in rupees or in equivalent foreign currency. Deals between parties outside the country will be subject to integrated GST (IGST) and classified as goods importation or exportation.
Reports said no decision was made yet but the government could start imposing the new tax as early as July 1 pending the government’s decision whether or not to tax cryptocurrency.
India’s tax authority has been clamping down on the crypto traders who are not paying taxes. Around 100,000 notices have between served to investors and traders alike. A survey of exchanges revealed $3.5B in crypto transactions occurred between individuals in the last year and a half.