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Indian Cryptocurrency Traders Must Pay 30% Tax When Using Foreign Exchanges

The Indian government may impose a goods and services tax (GST) on crypto investors using foreign exchanges.

The goods and services charge will be taxed on the investor rather than the service provider.

Indian exchanges are currently subject to an 18% tax.

“If a crypto exchange is based outside of India and is not affected by the goods and services tax (GST), then the trader in India will be responsible for paying GST,” an official said. An unnamed finance ministry official told Indian media, “This can be reflected in paragraph 4B of GSTR-1 and is currently in the final stage of discussion.”

If this tax law comes into effect, investors who trade on foreign platforms may be subject to a 30% tax on earnings.

India has imposed a 30% tax on all crypto income from April 1, and a 1% TDS for transactions exceeding INR 10,000 ($129) is expected to come into effect on April 1. July 1, 2022.

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