Last year, in mid-December, investigators from Income Tax Department conducted a raid at major bitcoin exchanges across India. The operation was conducted over suspicions of tax evasion by some exchange customers. Now, Indian Bitcoin Exchanges need clarification over the applicability of Goods and Services Tax GST.
Will Bitcoin Exchanges be asked to pay GST? If yes, then at what rate?
India’s top seven bitcoin exchanges have decided to approach the Advance Authority of Ruling (AAR) to seek clarification over the matter, states the Economic Times. AAR is a government body that decides on the applicability of tax rates.
As per ET, at least one Bitcoin exchange has already filed an application with the Maharashtra AAR for future tax liability.” Zebpay Unocoin, Coinsecure, BtcxIndia are some of the top Bitcoin exchanges in India.
“As per the GST rule, if Bitcoin is considered to be a currency, no taxes will be applied. But in case it is recognized as a good, GST at 18 percent could be applicable, or, in the case of it being deemed a service, 12 percent,” stated Economic Times.
source image: The Economic Times