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
Blockchain: Fine-tuning the Music Industry
Music might be in need of another tech disruption in the form of blockchain.

July 17, 2019

Graph Blockchain Secures Contract with South Korean Transport Ministry
The pilot project is for storing traffic data on a blockchain network as part of the Smart City nati...

July 13, 2019

Hong Kong, a Great Place for Blockchain Startups
It is quite evident that Hong Kong is quite rapidly developing to be a blockchain hub in the region ...

July 12, 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