Indian industry association Indiatech has written to the country’s finance minister, Nirmala Sitharaman, regarding crypto taxation. The association represents major Indian cryptocurrency exchanges, including Coinswitch Kuber, Wazirx, and Coindcx. In its letter, the association representing the crypto industry asked the finance minister for clarity regarding crypto taxation in the upcoming Union Budget 2022-23. The Indian central government is planning to soon introduce a bill regulating cryptocurrencies.
Indian crypto industry seeks clarity on crypto taxation.
Indiatech also urged the government to amend existing tax laws to include crypto assets. The industry association’s president and CEO, Rameesh Kailasam, told Ettech, “The budget should ideally offer coherent rules on direct taxation, and the GST Council should detail the applicability of taxation, else there will be confusion.” Some crypto exchanges have been accused of evading goods and services tax (GST). India’s Directorate General of Goods and Services Tax Intelligence (DGGI) is scrutinizing several crypto firms for tax evasion. The DGGI recently raided major crypto exchanges in the country and discovered “massive” GST evasion.
Indiatech urges the finance minister to recognize cryptocurrencies as digital assets instead of currencies.
The industry association has urged Finance Minister Nirmala Sitharaman to recognize cryptocurrencies as digital assets instead of currencies. The association has also recommended levying a flat 18% GST only on exchanges’ commissions. India still has no law directly governing the crypto industry. A cryptocurrency bill was listed to be considered in the winter session of parliament, but it was not taken up, and the Indian government is now reportedly reworking the bill. The Reserve Bank of India had earlier expressed its views regarding that industry, and it is in favor of banning cryptocurrencies.