Most of the Indian Crypto exchanges pay Goods and Services Tax[GST] on their profits and commission in the absence of clarity from the Indian tax authority.


Crypto exchanges providing services in India may have to pay an additional 18% tax even if they are not located in the country, said a report in Economic Times (ET).

At present, almost all exchanges located outside India do not pay the Goods and Services Tax (GST) tax,  Economic Times (ET) reported on Friday.

However, the Indian tax authority is examining whether they would be subject to the levy, which is paid on all transactions involving goods and services.

In the absence of clarity from the authority, most of the Indian exchanges pay 18% GST on their profits and commissions.

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According to some experts, foreign crypto exchanges may be subject to GST, as they are providing certain "data" services, reported Economic Times.

The tax department will classify crypto exchanges as providing an online information database access and retrieval (OIDAR) service, it said.

India has been moving in recent months to impose a complete ban on crypto. However, there were indications in June that the government would take a more liberal approach and move towards regulating the industry.

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