The Indian government may reduce the goods and services tax (GST, analogous to VAT) paid on the purchase or sale of cryptoassets from 18% to 1%.
As reported by CNBC TV18 India, the country’s government plans to classify cryptocurrency exchanges as e-commerce platforms. At the same time, instead of 18%, 1% will be charged from the commissions that traders pay to trading platforms for the execution of transactions.
The Indian government plans to divide cryptocurrency exchanges into three categories: platforms that act as intermediaries; cryptocurrency brokerage companies; as well as platforms that provide users with the ability to self-trade. These innovations are expected to improve the process of tracking cryptocurrency transactions.
In February, it became known that India could introduce double taxation of cryptocurrencies. So, from the commissions that traders pay to trading platforms for the execution of transactions, 18% will be charged. In addition, tax on income from cryptocurrency transactions must be paid.
Recall that the Indian government plans to introduce a new bill that will ban the use of cryptocurrencies to pay for goods and services, but allow digital asset trading.
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