Through Regulatory reclassification, India to reduce GST paid on cryptocurrency exchanges from 18 percent to 1 percent through regulatory reclassification.

Although more people are showing interest in investing in cryptocurrencies, lawmakers are strictly divided on implementing a proper regulatory framework. According to CNBC TV18 India, the Indian government categorizes cryptocurrency exchanges as e-commerce platforms, lowering the Goods and Services Tax (GST) customers must pay per transaction, or per trade, to 1 percent.

The government now levies an 18 percent<a href="https://www.cryptoknowmics.com/news/indias-finance-minister-says-cryptocurrency-bill-is-ready-for-the-cabinet/"> GST</a> on transactions made on licensed cryptocurrency exchanges, which is passed on to customers through trading fees. The procedure is identical to India's stock brokerage tax protocol.

However, depending on the exchange's legal domicile, the new GST proposal may result in higher tax payments for some customers. As per the report of Business Insider India, the government may ask foreign cryptocurrency exchanges to levy the same 18 percent GST as local equivalents when conducting business with Indian citizens, the government. 

Foreign crypto exchanges are usually free from GST registration, resulting in a significant tax disparity between customers of different exchanges.

The creation of a legislative framework for cryptocurrencies in India continues to divide Indian politicians. The proposed legislation includes everything from categorizing cryptocurrencies as commodities to outright restrictions on digital asset trade. 

The <a href="https://www.cryptoknowmics.com/news/ex-rbi-governor-explains-central-banks-concerns-with-crypto/">Reserve Bank of India's</a> restriction prohibiting banks from doing business with cryptocurrency startups was overturned by the Supreme Court of India last year IN 2020. Meanwhile, Prime Minister Narendra Modi has openly endorsed blockchain technology, but he has also been the victim of a cryptocurrency Twitter fraud.

India to Reduce GST Paid on Cryptocurrency Exchanges From 18% to 1%

Through Regulatory reclassification, India to reduce GST paid on cryptocurrency exchanges from 18 percent to 1 percent through regulatory reclassification.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

India to Reduce GST Paid on Cryptocurrency Exchanges From 18% to 1%

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