Crypto exchanges that offer services in India may have to pay an additional 18% tax even if they’re not based in the country, according to a report by Economic Times (ET).
- At present almost all exchanges based outside India do not pay the goods and services tax (GST) tax, ET reported Friday.
- However, the country's tax authority is examining whether they would be subject to the levy, which is paid on all transactions involving goods and services.
- Most Indian exchanges pay the 18% GST on their profits and commissions in the absence of clarity from the authority.
- Overseas crypto exchanges may be subject to GST given that they are providing certain "data" services, according to some experts, ET reported.
- The tax department would categorize crypto exchanges as providing an online information database access and retrieval (OIDAR) service, it said.
- India appeared in recent months to be moving to an outright ban on crypto. However, there were signs in June that the government would take a more lenient approach and move toward regulating the industry.