India’s Central Board of Indirect Taxes & Customs (CBIC), responsible for policy formulation and collection of indirect taxes like the goods and services tax (GST), has asked major cryptocurrency exchanges to provide details on the type of digital coins and tokens being traded and their valuation.
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- The information will help CBIC determine how to impose GST on the nascent asset class, local media Business Standard reported, quoting an unnamed senior official.
- CBIC has also sought details like transaction fees as well as information on different crypto products, according to the report.
- CBIC aims to bring crypto assets within the purview of GST, the report said.
- Currently, an 18 per cent GST is levied on the service provided by cryptocurrency exchanges.
- Indian tax authorities were exploring implementation of the highest GST slab of 28% on all cryptocurrency transactions, on a par with taxes on lotteries, casinos and other forms of betting.
- India currently imposes a 30% flat tax on all crypto income as well as a 1% tax deducted at source on all transactions above 10,000 Indian rupees (US$120) with no provision to offset losses with gains made elsewhere.
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