The Indian government is considering going for a reverse charge on Indian crypto investors who trade on foreign platforms. According to government officials, an Indian investor who procures services from an unregistered crypto exchange will have to bear the goods and services taxation (GST). Under GST, a reverse charge will be applicable to such investors who are the recipients of goods or services offered by the supplier.
Under the Reverse Charge Mechanism of Goods and Services Tax, the tax liability will come to the recipient instead of the service provider. A burden of 18% tax as a reverse charge under GST will be imposed by the tax authorities. However, the government is in the final stage to close the final decision and a meeting has been scheduled for the end of the month to discuss this further.
According to Business Today TV, when a citizen of India buys virtual digital assets from an unregistered financial intermediary like a foreign crypto exchange, then the recipient must pay the good and services tax (GST) on a reverse charge basis. Needless to say that the existing Indian investors are already paying a 30% tax on income from the crypto trade.
Also read: India likely to impose 28% GST on Cryptocurrency returns
