Cryptocurrency exchanges have asked the Reserve Bank of India (RBI) for clarity on their legal status and taxability. They wrote to the central bank, after lenders had refused services to them. The Supreme Court crushed the RBI’s order which prohibited entities, under it’s purview, from dealing in cryptocurrencies or providing related services.
Cryptocurrency exchanges have also asked about their classification of commodity, currency, goods or a service, which will determine their taxability under the goods and services tax system.
They have also approached the RBI for clarity on the fact that, if they pay GST on the whole transaction, then most platforms would not be able to survive.