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GST to Be Paid for Trading on Non-Indian Crypto Exchanges!

GST will be levied regardless of the location of a crypto exchange.

Vivek Johri, the Chairman of the Central Board of Indirect Taxes and Customs (CBIC), has clarified that transacting on a crypto exchange located abroad is liable to be taxed under the Goods and Services Tax (GST).

Mr. Johri told The Hindu BusinessLine that investors will have to pay GST in India on reverse charge basis. It means the liability to pay tax is on the recipient of the service.

Since the place of supply of service is in India and the recipient of service is in India, the investor will have to pay GST.

Apart from the widening tax base, he revealed an added benefit.

“One oblivious benefit is going to be that we will be able to exchange information with each other about asserting the tax base, because operators who are liable to pay Income Tax or the purchasers or those who transact in crypto, will also be liable to pay GST on some of those transaction.”

Vivek Johri

For long the Government has maintained that it does not collect information about the crypto transactions of India, now it will get the information through the tax returns itself.

The current announcements are not providing enough clarity. It will arrive only after the whole budget is unveiled.

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Cover Photo Source: Flickr

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