According to a study from CNBC TV18 Bharat, the nation'southward government plans to reclassify cryptocurrency exchanges every bit e-commerce platforms, which will reduce the Goods and Services Taxes (GST) paid on the fee per transaction, or per merchandise, to i%.

Currently, the Indian Government levies an 18% GST on transaction costs conducted on registered cryptocurrency exchanges, which is passed to users in their trading fees. The procedure is like to the tax protocol of India's stock brokerages.

However, depending on the legal domicile of the exchange, the new GST proposal could upshot in more tax liabilities for certain users. Dorsum in July, Business concern Insider India reported that the government may ask foreign cryptocurrency exchanges to charge the same eighteen% GST equally domestic equivalents to their clients when conducting business with Indian nationals. Overseas crypto exchanges are typically exempt from GST registration in India, resulting in a sizable tax gap between users of different exchanges.

Related: Indian crypto exchange CoinSwitch Kuber raises $260M

Indian lawmakers remain sharply divided by the construction of a regulatory framework for cryptocurrencies in the country. Proposed legislation ranges from classifying cryptocurrencies as bolt to outright bans on the trading of digital avails. Last twelvemonth, the Supreme Court of India struck down the Reserve Bank of India'due south ban, which prohibited banks from conducting business with cryptocurrency firms. Meanwhile, Prime Minister Narendra Modi has publicly backed blockchain engineering science but has as well been a victim of a crypto Twitter scam hack.

This commodity was updated to clarify GST applies to fees.