India’s Central Board of Indirect Taxes & Customs (CBIC) inquiries major crypto exchanges to provide information about digital assets exchanged on their platforms to impose GST on them accordingly.
According to reports, The CBIC has requested information, including the value of coins and tokens and how they might be divided.
The CBIC is “mapping out the taxability” of cryptocurrency transactions because it wants to include digital assets in the GST. Additionally, the CBIC wants to define and categorize the crypto asset class.
A senior official at the CBIC noted, “We had meetings with crypto exchanges on wide-ranging issues relating to the asset class. We have sought a detailed report on different crypto products being traded and their respective transaction fees and how they are getting calculated.”
The official added that it would be simple to assess how assets could fit into the GST regime and the corresponding tax rate if one had a good notion of the value of these digital products and mode of transactions.
The Indian CBIC has also requested information on various cryptocurrency products and specifics like transaction fees. The cryptocurrency exchanges have to disclose the information by the end of this month.
In March, 11 crypto exchanges from India were fined 81 Crores for GST evasion. Out of the 11 exchanges fined, WazirX owed a massive amount of 40.51 crores in taxes and paid 49.18 crores in recovery.
