The local banks denying their services for cryptocurrency exchanges have resulted in investors shifting to overseas platforms. All the overseas cryptocurrency exchanges having customers in India will need to pay GST. The department of indirect taxes is into investigating whether these exchanges will have to pay GST. The services provided by these exchanges will be considered as online information database access & retrieval (OIDAR) services. OIDAR rules say that digital or data service providers to Indians should be taxed. Since there is no clarity on the GST amount to be paid, the Indian exchanges are going with the nominal 18% GST on the commission they charge.
Source: Economic Times