The CBIC, the customs and indict taxes central board of India has recently issued instructions for the local major cryptocurrency exchanges in the country.
The instructions are pertaining to the cryptocurrencies being offered through the cryptocurrency exchanges.
The CBIC Demands Crypto Info
The regulatory authority has recently demanded that cryptocurrency exchanges locally operating in India provide information about cryptocurrencies being offered through their platforms.
The information has been posted by Business Standard on Friday, which is a local business news reporting firm. The news firm collected the information from one of the senior officials.
Statement by the Senior Official
The senior official has revealed that they have been holding meetings with the major cryptocurrency exchanges operating locally in India.
They have asked them for information about the asset class and have demanded to be provided with the list of issues, the exchanges are facing.
In addition to providing their support, they have also demanded the exchanges provide them with detailed information about three major aspects.
The first aspect is the different products being offered through the exchanges. The second factor is the transaction fees charged for each crypto product.
The third aspect is to provide detailed information on how the fees for the transactions are calculated.
Reason for Asking for Such Information
It has been claimed by the official that the CBIC is currently in the process of evaluating if the goods and services tax (GST) is to be implemented on crypto transactions.
It is for the taxability process of the cryptocurrencies and crypto transactions that the officials have sought the information.
In addition to the above, the CBIC is also working on making it clear that cryptocurrency assets are classified. They also want to make sure that there is a definition for crypto assets in their taxability laws.
The CBIC is eager to understand the nature of crypto and how taxes are implemented on these assets. This way, it would be easier to determine how they need to be classified and what taxes must be applied.
The main focus here for the CBIC is to implement GST accordingly and without any future mess-ups.
The CBIC has made it clear in the instructions the exchanges have until the end of November to submit the required data
Current Situation of Crypto in India
As of now, a levy of 18% GST is being applied to the services that are being provided by the crypto exchanges in India.
It was in July when the government of India proceeded with applying a 1% tax as TDS and a 30% tax on crypto income back in April.
India is also working tirelessly to come up with a policy and regulations surrounding cryptocurrencies. The country is eager to gain as much exposure as possible in cryptocurrencies to generate more revenue.