India’s tax authorities are paying closer attention to cryptocurrency traders. However, some platforms say that the GST rules on cryptocurrencies, such as Bitcoin, are unclear. They’re asking regulators for clarity on their precise GST obligations.
For instance, one crypto platform executive told the Times of India that “ambiguity around the taxation of crypto assets and that lack of clarity on filing procedures” was leading to accidental noncompliance.
Developing a framework for taxing cryptocurrency business is further complicated because of the various business models. For instance, some exchanges facilitate peer-to-peer transactions. Other platforms buy and sell cryptocurrencies directly. Each revenue model potentially has different GST implications.
Source: vatglobal.com
