TL;DR Breaking
- The stance of Indian authorities on foreign crypto exchanges was unclear until now.
- According to reports, the government is considering implementing 18 percent duty on exchanges.
- Another duty of around 2 percent is also being recognized for payments within the exchanges.
According to Business Insider, the government of India is currently planning to enhance its restriction on foreign crypto exchanges that are functioning within the boundaries of the nation. Officials plan on introducing a duty of 18 percent on all the foreign crypto exchanges, thus removing the distinction between Indian and foreign exchanges like Binance.
The applicable duty on all exchanges operating in India is the GST, that is, Goods and Services Tax. The duty department has taken its time to develop laws and impose duties on foreign crypto exchanges in the form of GST in order to resume their operations within the country.
Introduction of duty on foreign crypto exchanges
In India, there has been a spike of around 19,000 percent in crypto investment, and the authorities have definitely witnessed this colossal surge. This makes it even more important to impose further restrictions on foreign crypto exchanges operating within the country. For operating within the country, crypto exchanges like WazirX have to pay duties in the form of Goods and Services Tax.
The tax department has decided to place these crypto exchanges under the Online Information Database Assess and Retrieval Services (OIDAR). Under the set of services mentioned in this, all the foreign exchanges will be included as they are providing digital as well as data services to the citizens of the nation. Under the OIDAR, all foreign crypto exchanges operations in India will be listed, and hence, they will be liable to the 18 percent Goods and Services Tax payment.
The Indian government is also imposing a 2 percent duty on all the transactions that occur on these crypto exchanges. With these rules, the Indian government seeks to allow the operations of crypto exchanges in the country.
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