India plans to introduce reverse charge tax on foreign crypto platforms

India plans to introduce reverse charge tax on foreign crypto platforms

According to experts, the reverse charge is likely to be set at 18%

By Shashank Bhardwaj

Image: Shutterstock

The government of India is reportedly set to introduce a "reverse charge" on virtual digital asset investments on overseas platforms as part of the latest round of crypto regulations to be implemented in the country. A reverse charge is an indirect tax obligation that falls on the recipient of goods or services rather than the supplier.

As a result, goods and services taxation (GST) will fall on the investor, not the service provider, when an Indian investor acquires services from a domestically unregistered crypto exchange.

“If a crypto exchange is based out of India, and is not impacted by GST implication, then the receiver who is based out of India will be liable to pay GST on a reverse charge basis,” a source told Business Today TV. “This could be reflected in 4B of GSTR-1 and is in the final stages of discussion now.”

According to reports, this reverse charge may be set at 18%, depending on commissions gained through crypto transactions. The government also believes that the law on the applicability of GST to virtual digital assets is very clear. "The legality of virtual digital assets could be considered under schedule 2 of The Central Goods and Services Act, 2017, which mentions the activities or transactions to be treated as supply of goods or supply of services," the source said.

India is also considering including cryptocurrency in its goods and services tax (GST). The government already levies an 18% GST on financial intermediaries that facilitate the buying and selling of cryptocurrency. However, it is still unclear how cryptocurrency and services like crypto mining will be taxed.

If the proposed tax is implemented, investors trading on international crypto platforms will be subject to a 30% tax on their profits, a 1% tax deducted at source (TDS), and a GST reverse charge.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

Upcoming Metaverse R&D hub in Melbourne with a $100 mln budget

Cristiano Ronaldo to drive football fans into Web3 with Binance partnership

Coinbase to shut down Coinbase Pro to merge trading services

$2.25 billion options acquired may prove Bitcoin bottom is yet to come

Uniswap overtakes Ethereum on fees; DeFi outperforms

BIS: 90% of central banks exploring the utility of CBDCs

BlockFi secures $250 mln credit from FTX amid bear market blues

eBay acquires KnownOrigin; forays into NFT

Blockchain investments disrupting the real estate industry: Report

Solend invalidates Solana whale takeover plan with second governance vote

Japanese film studio to produce a movie series based on Crypto

Deloitte joins forces with NYDIG to help businesses with Bitcoin adoption

Bitcoin 'wholecoiner' wallets surge by 13k in the past week

BIS to launch crypto market intelligence platform

MIM depegs from Dollar as Luna domino effect persists

DeFi protocol Bancor pauses impermanent loss protection

Three Arrows and Celsius fall causes massive sell-offs in Defi

Coinbase facing class-action suits over unstable stablecoins

Critics say Bitcoin may go $0 this time, three signals suggest otherwise

Ukraine becomes the third non-EU country to join the European blockchain partnership

US airforce taps SIMBA chain for budgeting and accounting system

BTC gets rejected at $23k, US dollar declines from fresh 20-year high

Texas securities regulator to conduct probe in Celsius' withdrawal suspension

Circle launches euro-backed stablecoin EUROC

Bored Ape floor drops below $100K as NFT market takes a huge hit

Three Arrows fund reportedly facing insolvency

Consensus 2022 recap: Web3, regulations, and optimism for crypto's future

Survey suggests 71% of high net worth individuals have invested in digital assets

SEC launches probe into insider trading in exchanges

Binance halts BTC withdrawals, CZ says funds are Secured Asset Fund for Users

Tesla and Microstrategy lose $1.5 bn together on BTC holdings

Coinbase slashes staff by 18% amidst bear market

Celsius hires restructuring lawyers amid solvency fears

Crypto Connect, LBank is set to organise a nationwide crypto road show

Nano Labs files for a $50 mn Nasdaq IPO

Swedish Central Bank snipes at Bitcoin's energy-intensive PoW

Crypto market crash: Why Ethereum and Bitcoin see a dip in valuation

Jack Dorsey plans to build 'Web5' based on Bitcoin

VeChain signs a $100 mn sponsorship deal with UFC

Anonymous hacker served restraining order via NFT

Coin Center files lawsuit against US Treasury for alleged financial spying

Jack Dorsey and Jay-Z collaborate to launch 'The Bitcoin Academy'

Tether launches new USDT tokens on the Tezos blockchain

South Korean Exchanges delist Litecoin

Lithuania aims to tighten crypto regulation and ban anonymous accounts

Budweiser partners with Zed Run to enter NFT game domain

Edge to launch confidential no KYC crypto Mastercard

Metaverse tokens register 400% YoY growth despite altcoin bloodbath

Alibaba's Cloud Branch launches its own NFT service

Iota partners with Dell to develop real-time carbon footprint tracking

Aurora pays $6 mn bug bounty to ethical hacker

Crypto.com's Cronos launches Web3-focused $100 mn accelerator

Two more crypto ETFs launch in Australia

Binance collaborates with The Weeknd for World Tour

MetaBrewSociety to offer voting rights over a brewery via NFTs & DAO

Over half of the Asian affluent possess crypto investments in their portfolio

IRA Financial Trust to file a lawsuit against Gemini over $36 mln crypto assets exploit

CBDC can kill crypto: RBI deputy governor tells IMF

Bermuda positions itself to become a crypto hub

BAYC and OtherSide witness phishing attack; lose 145 ETH

US FTC blames social media for crypto scams

Japan Passes Stablecoin Bill For Investor Protection

India's Central Bank Plans Graded Implementation Of CBDC

Coinbase is extending its hiring freeze indefinitely

Binance raises $500 mln for Web3-focused fund

NFT market sees first insider trading case in US

Solana blockchain halted for four hours

Bitcoin dominates derivatives market, ends May on a high note

KuCoin launches decentralised wallet and ventures into Web3

South Korea to establish virtual assets watchdog in light of Terra collapse

JPMorgan pilot tests Asset Tokenization With Singapore

World Bank Disapproves Of Central African Republic's "Sango" Crypto Hub

$90 million DeFi hack discovered seven months after the theft

Terraform Labs' Employees Probed For Intentional LUNA, UST Price Manipulation

Agoraverse to introduce the first Web 3.0 shopping center

MoneyGram and Stellar partner to offer stablecoin remittance

Binance receives a category 4 license in Bahrain

Hong Kong Classic movie-themed NFT collection to launch in June

Bitcoin and Ethereum to be accepted for payments by luxury fashion house Balenciaga

The Nemesis brings the Formula 1 Grand Prix into the metaverse

SpaceX to follow Tesla to accept DOGE for merch: Elon Musk

Italian university promotes local culture in the metaverse

Tether launches a stablecoin pegged to Pesos on Ethereum, Tron and Polygon

Fed Vice chair speaks about the potential of CBDCs and the future of stablecoins

JPMorgan trials private blockchain for collateral settlement

Mythical games enters a strategic partnership with NFL to launch play-and-own NFT video game

Andreessen Horowitz raises $4.5bn for its crypto fund

Uniswap exceeds $1 trillion in swaps

Babel Finance hits a $2bn valuation with $80mn funding

Stellar joins hands with Mercado Brazil to develop CBDC for Central Bank of Brazil

CoinDCX offers an opportunity to its users to generate crypto yield on crypto assets through it's 'Earn feature'

US to have crypto oversight bill in June

First 'crypto satellite' launched on SpaceX rocket

SWIFT May not exist in five years: Mastercard CEO

eBay drops first NFT collection to non-crypto buyers

Universal Music Group doubles down on NFTs for musicians

WEF 2022: Banks see the need for caution and speed on central bank digital currencies

VC funding for African crypto startups grew 11x in 2022: Report

Bitcoin displays red candles for the eighth consecutive week

Avalanche to host novel NFT marketplace Artcrypted

132-year-old Swiss bank will now offer crypto services

OpenSea launches NFT marketplace Seaport

Bill to allow retirement fund investment into crypto to be introduced in US

How NFTs lost their lustre

Crypto.com partners with Shopify to enable crypto payments via app

FTX enters TradFi; launches stock trading services in the US

Sebi to make celebrity endorsement of crypto products tougher

Record number of Shib burnt in a single retail transaction

South Korea proposes a new framework for crypto firms

Coinbase introduces Coinbase Pay to web developers

Defi tracker Ape Board acquired by Ethereum analytics firm Nansen

India plans to introduce reverse charge tax on foreign crypto platforms

Spotify reportedly tests NFT galleries on musician profiles

Crypto regulations to be discussed at G7

Brazil's stock exchange to launch bitcoin futures trading

A16z State of Crypto Report: Ethereum a double-edged sword, and other takeaways

Crypto could lead to dollarisation of economy: RBI

El Salvador to host 44 countries to discuss Bitcoin

Do Kwon unveils the plan to revive Terra

Vitalik Buterin donates $1 billion in ETH to Dogecoin Foundation

Elon Musk advocates Dogecoin as a potential currency

Binance denies participation in Terra's 2019 funding round

61% Companies want to market in the metaverse: Survey

Nigeria's SEC classifies cryptos as securities

UK Treasury pushes forward a Stablecoin regulation

Chinese Court declares that BTC has economic worth

Brazilian bank Nubank introduces Bitcoin and Ether trading

Diem co-creator David Marcus launches crypto project

Terra's stablecoin UST collapses, LUNA falls 99%

Institutional Bitcoin inflow increases amidst market downtrend

Bitcoin falls to lowest in 16 months; sheds 2021 gains

KuCoin Exchange reaches $10 billion valuation following funding round

Russian journalists solicit crypto donations amidst western sanctions

NFT blockchain Flow launches $725 mln Blockchain Ecosystem

Madonna joins hands with Beeple for NFT Collection

YouTube shuts down educational crypto channels

Meta confirms NFT testing on Instagram to begin this week

Japanese ecommerce website allows crypto payments

China's CBDC rolled out at transport networks in two more major cities

Mining Capital Coin CEO accused of $62 mln investment fraud

Bitcoin falls below $30,000, lowest since July 2021

State of Utah creates blockchain and digital innovation task force

$36 million in JUNO tokens lost forever due to a typo

Elon Musk secures funding from Sequoia, Binance to back Twitter bid

Terra acquires $1.5 billion more Bitcoin

South Korea to remove ban on ICO; new crypto regulations underway

Crypto donations to be accepted in the US Federal elections

Spotify launches its metaverse in partnership with Roblox

Uzbekistan approves solar mining of crypto

Starbucks teases Web3 platform in NFT announcement

Coinbase opens NFT marketplace to all

Kazakhstan orders crypto miners to register with authorities

Sports NFT Platform Stakes raises $5.3 mln for 'digital bragging rights'

Rari Capital loses $80 million in Fresh Exploit

Crypto publication Decrypt raises $10 million at $50 million valuation

Vitalik Buterin says transaction fees need to reduce to 5 cents to remain acceptable

MicroStrategy reports $170 million impairment loss on Bitcoin holdings in Q1

US senators propose new crypto bill limiting capital gains tax

BAYC Metaverse witnesses $300 million sales at launch

21Shares and ByteTree launch a gold-cum-Bitcoin ETP

NFT project DeGods DAO buys basketball team in Ice Cube's Big3 leap

NFT sector to process more than $800 billion in next 2 years: report

Telegram to allow users to send crypto

Goldman Sachs rolls out first bitcoin-backed loan

Ukrainian government to accept NFT donations

Bitcoin not a panacea for Africa's economic woes: IMF

Mexico Senate gets Bitcoin ATM

Edward Snowden reveals he's one of the creators of Privacy Coin Zcash

BlackRock launches blockchain industry ETF

Ethereum's incoming switch to Proof-of-Stake driving down GPU prices

Central African Republic adopts bitcoin as legal currency

Brazil approves law to regulate crypto

Binance announces crypto card for Ukrainian refugees

New York bans crypto mining using non-renewable power

Derivatives exchange Bitget launching in India

NFL Releases NFT collection on Polygon

Sustainable Bitcoin mining grew 60% in the past year

Bored Ape Club Instagram hacked, NFTs stolen

Dogecoin surges after Twitter accepts Musk's buyout offer

Meta to open first physical store in metaverse bet

New York looking to criminalise crypto frauds

Popular NFT launch on Ethereum loses $34 million in faulty smart contract

DeFi platforms at much higher risk than centralised exchanges: report

Twitter to allow crypto payments, backed by Stripe

Bahamas may allow residents to pay taxes with crypto

Coinbase to acquire BtcTurk exchange for $3.2 billion

Paris Hilton invests in Afterparty's new NFT ticketing platform

Ridley Scott to Make a Movie on Ethereum

Russia to include cryptocurrencies in its updated tax laws

40 crypto companies sign open letter to EU regulators

BTC and ETH will break all-time highs in 2022: Celsius CEO

Blockchain games are leading the DApp industry: DappRadar report

Finance Minister Nirmala Sitharaman calls for global crypto regulations

WazirX co-founders shifting base to Dubai

Blockchain.com reportedly exploring IPO this year

CoinDCX raises over $135 million in fresh funding round, now worth $2 billion

Atari terminates blockchain joint venture with ICICB Group

Monero's July hard fork confirmed by its community

Backed by Shark Tank's Kevin O'Leary, WonderFi set to acquire Canadian exchange Coinberry

US Govt Links North Korea to Axie Infinity Hack

Jack Dorsey's first tweet NFT resells for only $280

Opera crypto browser now available on iOS

Beanstalk Stablecoin protocol loses $182 million in governance exploit

Jack Dorsey vs. Vladimir Tenev on Bitcoin transaction fees

Ripple claims 'a very big win' in SEC case

Argentinian town to invest in crypto mining to fight inflation, upgrade rail infra

Pantera Capital closing fundraise for its blockchain fund after raising $1.3 billion

Homegrown blockchain co Polygon commits to go carbon neutral this year

NBA registers four NFT trademarks

US crypto expert jailed 63 months for helping North Korea

Fortnite developer Epic Games raises $2 billion to build for the metaverse

Indian companies storm the metaverse and NFT space

Coinbase is producing a movie trilogy on Bored Ape NFTs

Multiple Indian Twitter accounts hacked, NFT content posted

German police shut down $1.3 billion illegal darknet firm

Meta tests sale of virtual goods in metaverse

Bitcoin 2022 Conference: Bitcoin Maximalists attack national currencies

Binance Gets In-Principle Approval to Operate as Crypto Broker in Abu Dhabi

EU limits Russians' crypto investments to 10k Euros

Coinbase suspends UPI payments in India three days after launch

From KFC to Tesla, Dell: Crypto-curious corporations struggle to find right recipe

In Texas, crypto miners turn to solar power

South Africa concludes technical Proof-of-Concept for its CBDC settlement system

Terra buys $200 million in AVAX for reserves

Bitcoin will remain as a standard: Chess world champion Garry Kasparov

Coinbase launches in India

Meta working on virtual money 'Zuck Bucks': report

Germany closes Russian darknet marketplace Hydra

Britain paves way to accept stablecoin

Crypto industry reels from $600 million hack

NFT of Nelson Mandela's arrest warrant auctioned for $130,000

Bank of England calls for tighter regulation of cryptocurrencies

ECB's Lagarde 'concerned' about crypto use to dodge Russia sanctions

Crypto provides fix for some in crisis-hit Afghanistan

Bitcoin to the rescue: Cryptocurrencies' role in Ukraine

Digital art in spotlight as Dubai makes crypto hub bid

G7 looks to thwart cryptoassets use as Russian sanctions dodge

Can cryptocurrencies give Russia, others breather from economic sanctions?

Cryptocurrencies enter Russia-Ukraine conflict

Russia seeks to regulate cryptocurrencies

Donald Trump's NFT collection to laud his own presidency