India Considers’ Reverse Charge’ Tax on Foreign Crypto Platforms

The Indian government is considering imposing a “reverse charge” on virtual digital asset investments made through foreign platforms. The burden of goods and services taxation (GST) will rest on an Indian investor who purchases services from a domestically unregistered crypto exchange. #Markets #IndiaCrypto #IndiaCryptoRegulations #IndiaCryptoTax India Mulls ‘Reverse Charge’ Tax on Foreign Crypto Platforms https://t.co/ZAOs4cyszp pic.twitter.com/h1137CN8P3 — bit.trail (@roccodallas) May 18, 2022 “If a crypto exchange is situated in India and is not subject to GST, then the receiver will be obligated to pay GST on a reverse charge basis,” a source told Business Today TV. According to reports, depending on commissions gained through crypto transactions, the percentage of this reverse charge maybe 18 percent. “The legality of virtual digital assets could be examined under schedule 2 of The Central Goods and Services Act, 2017, which lists the activities or transactions to be treated as supply of goods or services,” the source continued. India is considering expanding the scope of its goods and services tax (GST) to include cryptocurrency. While the judgment is expected this month at the GST council, investors have already paid 30% tax on cryptocurrency earnings since April 1. Reserve Bank of India The Reserve Bank of India raises concerns, but the industry is divided. The Reserve Bank of India (RBI) recently warned the Parliament...