The Indian bitcoin exchange requires the government to clarify its tax obligations

nBankruptcy comment: India’s tax authorities have previously conducted a survey of local bitcoin exchanges, hoping to collect sufficient information to tax in this area. However, the applicability of the Indian tax code to cryptocurrencies is unclear, leaving some exchanges worried. They have submitted their applications to the relevant departments and hope the government can give a clear explanation as soon as possible so that the exchange can clearly understand how tax should be paid to ensure effective operation.n
nTranslation: Inan
The Bitcoin Exchange of India is puzzled by the suitability of GST rules for its operations.n
According to a report in the Economic Times of India, seven Indian bitcoin exchanges, including Unocoin, Zebpay and CoinSecure, are seeking clarification of their business in accordance with the GST rules and plan to decide on the issue with India regarding tax compliance Government agencies – prior ruling (AAR) to discuss.n
An official familiar with the matter told the source that at least one Bitcoin exchange has filed an application with AAR in Maharashtra requesting the agency to clearly state its tax liability.n
The official said:n
n”The tax department is studying this concept because Bitcoin is a very complex issue.”n
nAccording to the GST, if Bitcoin is considered a currency, then there is no tax law applicable. However, if it is considered a commodity, it is subject to 18% of the tax, and 12% of the tax is considered as a service.n
Abhishek A Rastogi, a partner at Khaitan u0026 Co, a law firm, told the Economic Times that it is unclear whether the GST rules apply to all or just the profits earned by the Bitcoin Exchange. He pointed out:n
n”The tax authorities have to make it clear whether the Bitcoin exchanges are selling goods and services or simply profit trading platforms.”n
nA month ago, the Indian tax department visited several bitcoin exchanges across the country to define its users. The reason the department took this action is because it suspects that some Exchange users are tax evasion.n

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