50 Crore Fine for WazirX
WazirX which is one of the biggest and most popular Crypto Exchanges in India was recently fined a sum of 50 Crore Approx in accordance to them failing to pay necessary GST Taxes. Now this news is quite true but the way the news is being portrayed all over the INTERNET is kinda fishy. The original news says that there was a slight miscalculation on the GST paid by WazirX and when the Income Tax Department notified the exchange about it they were swift to pay the rest of the Tax that was owed.
But it seems a lot of people are pondering on the fact that WazirX was trying to hide the fact so that they wouldn't have to pay the extra 50 Crore GST tax. But I feel like when it comes to the calculation of taxes there is most certainly a big room for error to happen and since WazirX is partly owned by Binance I feel like the books weren't cleared on both ends and some amount was left untallied.
WHAT AM I DOING?
I do have an Account on WazirX which I use for some Crypto Holdings and I am not going to liquidate any assets from the exchange as I know this with quite a certainty that WazirX is not going anywhere and they are not going to RUG PULL as a lot of people are suggesting. So keep Calm and HODL.
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https://twitter.com/Sumantmahato/status/1477672554923843584
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What if I dont earn 18% in certain transactions. Do I still have to pay the tax
Taxation in Crypto is a little complicated but let me give you a short version of it.
If you Invest 1000 INR in Crypto and that Crypto goes up in value to say 10000 INR then you will have to pay taxes on 9000 INR which is your Capital Gains. Then again Capital Gains are categorized into two types Short term capital gains which are taxed at 15% and long-term capital gains which are taxed at 10%. Long-term applies only when you hold your Crypto for over a year.
Now there is another tax for websites like HIVE as we earn HIVE from writing posts the Income from these websites will come under Income Tax and you will be charged according to your Tax Slab. For example you earn 10 lakhs INR per year from such websites than the entire 10 Lakh INR will fall under your Income Tax.
And there is no GST for me as such right? So this GST is applicable to only exchanges as of now right?
GST is applicable only for exchanges or if you operate any business related to crypto. Individuals don't need to go the GST route