Is GST applicable for BTC to INR conversion?

TigerMart

full member

Activity: 271

Merit: 117

Quote from: RameshSekar111 on April 24, 2018, 01:38:03 PM

We have to pay tax if it involves the regular bank transaction.
There is no tax if your transaction is less than 20k per month.

Quote from: Soundharthulasi on May 02, 2018, 10:09:45 AM

I GST is not applicable to bit coin to inr translate because
Still now indian government not accepted the usage of bit coin ..india kept bitcoin not in use by government

Please DO NOT misguide with wrong info. GST is payable if total transaction volume in a financial year is over 20L INR for services and 40L INR for goods. BTC businesses generally fall under services.

Soundharthulasi

newbie

Activity: 7

Merit: 0

I GST is not applicable to bit coin to inr translate because
Still now indian government not accepted the usage of bit coin ..india kept bitcoin not in use by government

RameshSekar111

newbie

Activity: 46

Merit: 0

We have to pay tax if it involves the regular bank transaction.
There is no tax if your transaction is less than 20k per month.

deepakg2m

copper member

Activity: 490

Merit: 2

Quote from: ahmad21 on October 14, 2017, 06:23:11 AM

Quote from: AOL on October 10, 2017, 04:48:54 PM

Quote from: ahmad21 on October 09, 2017, 12:32:38 PM

I am a CA final year student and can answer your questions. First of all you are not the service provider even if you buy or sell anything. You are just a seller selling your asset( lets say your car ever heard gst on it?). No matter what the amount of your car is you are not providing any service nor are you making any value addition.

The only person liable to pay GST here would be the japanese exchange. But as they do not lie in the Indian borders they are not taxable too. Moreover what you are doing is import of service and not export of service. The only service provider here is the japanese exchange platform which charge a fee and they would surely be paying an indirect tax to their govt as per laws.

I hope it answers all your queries.

Thanks a LOT. But, this only explains the Case 2. Could u please provide your view on Case 1 as well?

Quote from: AOL on September 02, 2017, 11:29:00 AM

1. Bitcoin sold directly to another person within India against NEFT/IMPS on LocalBitcoins.com. Please note that, it may be considered as inter-state supply as well as eCommerce.

I already said that selling your personal commodity even inter state does counts as a service. For example even if you sell your old car to someone in other state through quickr and took payment throught NEFT/IMPS. This is not a service. Now put your bitcoins in place of car and localbitcoins in place of quickr. Only gst you will be paying here is on NEFT fees and thats it.

So you mean that we are not paying GST for BITCOIN transactions rather we had to pay GST for the NEFT in which we are doing transactions.Thanks a lot for sharing your knowledge.

Sasuke102001

full member

Activity: 280

Merit: 111

I don't know about the current situation whether Gst is applied on the Btc to inr conversion or not but I pretty much know if the government gets a chance to get tax and gst involved in the conversion they will definitely put it into play. Indian government just tries to tax every goddam thing they can.

yasminahmed

newbie

Activity: 1

Merit: 0

Quote from: TrustedTrader on September 12, 2017, 03:05:04 PM

Quote from: AOL on September 02, 2017, 11:29:00 AM

1. Bitcoin sold directly to another person within India against NEFT/IMPS on LocalBitcoins.com.

Does Bitcoin have any SAC code or a HSN number? If yes, it would attract GST, otherwise no.

No, only if conversion or other service is involved. You can find SAC for such service at https://www.indiafilings.com/find-gst-rate

ahmad21

sr. member

Activity: 672

Merit: 271

Quote from: AOL on October 10, 2017, 04:48:54 PM

Quote from: ahmad21 on October 09, 2017, 12:32:38 PM

I am a CA final year student and can answer your questions. First of all you are not the service provider even if you buy or sell anything. You are just a seller selling your asset( lets say your car ever heard gst on it?). No matter what the amount of your car is you are not providing any service nor are you making any value addition.

The only person liable to pay GST here would be the japanese exchange. But as they do not lie in the Indian borders they are not taxable too. Moreover what you are doing is import of service and not export of service. The only service provider here is the japanese exchange platform which charge a fee and they would surely be paying an indirect tax to their govt as per laws.

I hope it answers all your queries.

Thanks a LOT. But, this only explains the Case 2. Could u please provide your view on Case 1 as well?

Quote from: AOL on September 02, 2017, 11:29:00 AM

1. Bitcoin sold directly to another person within India against NEFT/IMPS on LocalBitcoins.com. Please note that, it may be considered as inter-state supply as well as eCommerce.

I already said that selling your personal commodity even inter state does counts as a service. For example even if you sell your old car to someone in other state through quickr and took payment throught NEFT/IMPS. This is not a service. Now put your bitcoins in place of car and localbitcoins in place of quickr. Only gst you will be paying here is on NEFT fees and thats it.

newinbtc

legendary

Activity: 1190

Merit: 1001

Quote from: AOL on October 10, 2017, 04:48:54 PM

Quote from: ahmad21 on October 09, 2017, 12:32:38 PM

I am a CA final year student and can answer your questions. First of all you are not the service provider even if you buy or sell anything. You are just a seller selling your asset( lets say your car ever heard gst on it?). No matter what the amount of your car is you are not providing any service nor are you making any value addition.

The only person liable to pay GST here would be the japanese exchange. But as they do not lie in the Indian borders they are not taxable too. Moreover what you are doing is import of service and not export of service. The only service provider here is the japanese exchange platform which charge a fee and they would surely be paying an indirect tax to their govt as per laws.

I hope it answers all your queries.

Thanks a LOT. But, this only explains the Case 2. Could u please provide your view on Case 1 as well?

Quote from: AOL on September 02, 2017, 11:29:00 AM

1. Bitcoin sold directly to another person within India against NEFT/IMPS on LocalBitcoins.com. Please note that, it may be considered as inter-state supply as well as eCommerce.

Bitcoin sold directly to another person within India against NEFT/IMPS on LocalBitcoins.com , - Just pay Service Charges mention it you are selling

you have to pay income tax its compulsory

AOL

jr. member

Activity: 142

Merit: 4

Quote from: ahmad21 on October 09, 2017, 12:32:38 PM

I am a CA final year student and can answer your questions. First of all you are not the service provider even if you buy or sell anything. You are just a seller selling your asset( lets say your car ever heard gst on it?). No matter what the amount of your car is you are not providing any service nor are you making any value addition.

The only person liable to pay GST here would be the japanese exchange. But as they do not lie in the Indian borders they are not taxable too. Moreover what you are doing is import of service and not export of service. The only service provider here is the japanese exchange platform which charge a fee and they would surely be paying an indirect tax to their govt as per laws.

I hope it answers all your queries.

Thanks a LOT. But, this only explains the Case 2. Could u please provide your view on Case 1 as well?

Quote from: AOL on September 02, 2017, 11:29:00 AM

1. Bitcoin sold directly to another person within India against NEFT/IMPS on LocalBitcoins.com. Please note that, it may be considered as inter-state supply as well as eCommerce.

ahmad21

sr. member

Activity: 672

Merit: 271

Quote from: AOL on September 02, 2017, 11:29:00 AM

In either of the following two cases, total volume will be far less than INR 20 Lakh/year. There are two ways I can do it...

1. Bitcoin sold directly to another person within India against NEFT/IMPS on LocalBitcoins.com. Please note that, it may be considered as inter-state supply as well as eCommerce.

2. Bitcoin sold at a Japanese exchange, where bitcoin has a legal status, and convert JPY to INR through bank transfer using SWIFT code. Please note that, it may be considered as export service.

Please note that...

i. I'm only interested in selling. Buying bitcoin has no implication of GST at buyer's end and my total volume is far less than INR 20 Lakh/year.

ii. I'm least interested to know whether GST is applicable or not for trading on Indian exchanges as I dont and I wont trade over there.

iii. If u r a CA, please do mention the same.

I am a CA final year student and can answer your questions. First of all you are not the service provider even if you buy or sell anything. You are just a seller selling your asset( lets say your car ever heard gst on it?). No matter what the amount of your car is you are not providing any service nor are you making any value addition.

The only person liable to pay GST here would be the japanese exchange. But as they do not lie in the Indian borders they are not taxable too. Moreover what you are doing is import of service and not export of service. The only service provider here is the japanese exchange platform which charge a fee and they would surely be paying an indirect tax to their govt as per laws.

I hope it answers all your queries.

Be Like Bro

newbie

Activity: 25

Merit: 0

Quote from: endlasuresh on September 12, 2017, 08:21:31 PM

It comes under software business, so Modi will definetely make GST for Bitcoin too. I think it would be 18% tax, but still I am not sure.

I already had GST for offline business and they made arise from 5% to 18%.

On localbitcoins.com also we need to pay 7 to 9% as some said yesterday here in this forums and the GST might applied.
How about for Paypal? if they have GST for Paypal then yes for Bitcoin too or no.

c'mon, unocoin have registered their company to GST and here's their IGST number: 29AABCU8112D1ZI. But they're charging about 0.2% as tax and 1% as fees. So i think, there's no government tax for bitcoin in India yet as RBI only warns the bitcoin users not yet regulated.

cxihub

newbie

Activity: 45

Merit: 0

Yes GST applicable for bitcoin transaction. Bitcoin come as service so you have to pay GST as service.

newIndia

legendary

Activity: 2226

Merit: 1052

After the GST council meeting yesterday, it seems like bitcoin sales below 20 Lakh INR/year is not taxable if u have no other income source that takes the total turnover over 20 Lakh INR/year.

expertofexperts

full member

Activity: 293

Merit: 100

Well recently a member of BJP has tabled a bill in lower house to ban and make illegal the use of bitcoin in India. For more update refer this article
http://www.thehindu.com/business/Economy/use-of-bitcoin-illegal-says-govt/article17702483.ece

Now when a thing is going to be illegal soon, what it need to do with GST (or if Jaitley has proposed some tax rate on cocina, marijuana etc Grin

)? And it is Kirit somaya who has tabled that bill 2 weeks back as per my knowledge..

endlasuresh

full member

Activity: 756

Merit: 103

It comes under software business, so Modi will definetely make GST for Bitcoin too. I think it would be 18% tax, but still I am not sure.

I already had GST for offline business and they made arise from 5% to 18%.

On localbitcoins.com also we need to pay 7 to 9% as some said yesterday here in this forums and the GST might applied.
How about for Paypal? if they have GST for Paypal then yes for Bitcoin too or no.

TrustedTrader

member

Activity: 116

Merit: 12

Quote from: AOL on September 02, 2017, 11:29:00 AM

1. Bitcoin sold directly to another person within India against NEFT/IMPS on LocalBitcoins.com.

Does Bitcoin have any SAC code or a HSN number? If yes, it would attract GST, otherwise no.

Blackshadow007

sr. member

Activity: 787

Merit: 276

Currency Xchanger™

What i know any EXPORT OF SERVICE Attract NIL [ 0% GST ] when you sell your service to foreign person for Foreign currency . But if you trade between Indians then GST will attract . All this are " SELLING THROUGH ECOMMERCE PORTAL " during GST registration and mention Export of service on Business description . You must register with GST when you provide any service or trade via any ecommerce platform but for return you have to file Nil

AOL

jr. member

Activity: 142

Merit: 4

In either of the following two cases, total volume will be far less than INR 20 Lakh/year. There are two ways I can do it...

1. Bitcoin sold directly to another person within India against NEFT/IMPS on LocalBitcoins.com. Please note that, it may be considered as inter-state supply as well as eCommerce.

2. Bitcoin sold at a Japanese exchange, where bitcoin has a legal status, and convert JPY to INR through bank transfer using SWIFT code. Please note that, it may be considered as export service.

Please note that...

i. I'm only interested in selling. Buying bitcoin has no implication of GST at buyer's end and my total volume is far less than INR 20 Lakh/year.

ii. I'm least interested to know whether GST is applicable or not for trading on Indian exchanges as I dont and I wont trade over there.

iii. If u r a CA, please do mention the same.

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