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 now subject to tax 18%.
“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 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 tax 30% for income.
India has imposed tax 30% for with all crypto earnings from April 1st and a 4% TDS for transactions exceeding 1 INR ($10.000) expected to come into effect on July 129, 1.