Cryptocurrencies purchased from abroad on behalf of Indian exchanges and traded in India may attract tax.
This has been said in a report quoting people associated with the matter. According to the report, the tax department is investigating how exchanges that allow trading in India manage their cryptocurrencies and whether there are any elements or transactions where the Goods and Services Tax (GST) may be applicable.
There are currently several cryptocurrency exchanges operating in India but only the largest of these exchanges actually have their crypto currency available for Indian investors to sell and buy.
Some of the major exchanges also have branches outside India that hold large amounts of crypto assets. These exchanges transfer crypto to Indian entities before sale.
11 crypto exchanges in the country have jointly evaded GST worth Rs 81.54 crore. Minister of State for Finance Pankaj Chaudhary has given this information in the Lok Sabha.
The Minister said that this tax evasion has been caught by the Central GST Authority and has recovered Rs 95.86 crore along with penalty. Many well-known crypto exchanges are also included in the GST evaders.
