MUMBAI: Are Bitcoin exchanges required to pay goods and services tax? If they are, what would the rate be? And, will GST be levied on the revenues or operating margins of these exchanges?
India's top seven Bitcoin exchanges, which include Zebpay, Unocoin, CoinSecure and BtcxIndia, plan to approach the Advance Authority of Ruling (AAR) for clear answers to these questions, two people with direct knowledge of the matter told ET. AAR is a quasi-judicial body that can decide the applicability of tax rates.
"At least one Bitcoin exchange has already filed an application with the Maharashtra AAR for future tax liability," said one of the persons cited above. "The tax department is currently researching the concept as Bitcoins are a very complex subject." Zebpay, Unocoin, CoinSecure and BtcxIndia didn't respond to queries. 