June 5, 2023

Great Indian Mutiny

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India will reduce the tax on goods and services paid on cryptocurrency transactions from 18% to 1% through a regulatory reclassification.

One step News CNBC TV18 India, The local government plans to reclassify cryptocurrency transactions as e-commerce sites, This will reduce the Goods and Services Tax (GST) that users have to pay on a transaction or a business to 1%.

Currently, The Government of India uses 18% GST on transactions made on registered cryptocurrency transactions, which are passed on to users in the form of trade fees. The process is similar to the financial protocol of stock brokers in the country.

However, depending on the legal address of the transaction, the new GST proposal may incur higher tax obligations for some users. In July, Business Insider India Reported When doing business with Indians, the government may ask foreign cryptocurrencies to charge their customers the equivalent of 18% GST domestically. Foreign cryptocurrency transactions are often exempted from GST registration in India, resulting in significant tax gaps between users of various transactions.

Indian lawmakers are highly divided in creating the regulatory framework for cryptocurrencies in the country. The classification of cryptocurrencies into commodities ranges from legal projects Total ban on trading digital assets. Last year, the Supreme Court of India Canceled Reserve Bank of India bans banks from doing business with cryptocurrency companies. For his part, the Prime Minister of India Narendra Modi Publicly supported Blockchain technology, but a year ago he was a victim Fraud to steal cryptocurrencies through Twitter.

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