An industry association in India has written to the country’s finance minister, requesting clarity on cryptocurrency taxation in the 2022-23 Union Budget. “Ideally, the Budget should provide coherent rules on direct taxation and the GST Commission should detail the applicability of the taxation, otherwise confusion will arise.”
Industry wants clarity on crypto tax laws in 2022-23 Union Budget
Indian industry association Indiatech has written to the country’s finance minister, Nirmala Sitharaman, on the issue of taxation of cryptocurrencies. The association represents major cryptocurrency exchanges in India, including Coinswitch Kuber, Wazirx and Coindcx.
In the letter, the association asked the finance minister to clarify crypto taxation in the 2022-23 Union Budget. The industry body also urged the government to amend existing tax laws to include crypto assets. Rameesh Kailasam, president and CEO of Indiatech, told Ettech:
Ideally, the budget should provide coherent rules on direct taxation, and the GST Board should detail the applicability of the taxation, otherwise confusion will arise.
Some cryptocurrency 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 companies for tax evasion.
DGGI recently Raid Major cryptocurrency exchange and found “massive” GST evasion. The crackdown reportedly uncovered tax evasion worth about 700 million rupees ($9.4 million). Cryptocurrency exchanges blame tax law confusion for failing to pay taxes properly.
Indiatech has urged Finance Minister Nirmala Sitharaman to admit that cryptocurrencies are digital assets, not currencies. The industry association also recommends 18% GST on exchange commissions only.
India still has no laws governing crypto assets directly. A cryptocurrency bill was put up for consideration at the winter session of parliament but was not adopted, and the Indian government is now reportedly in the process of amending the bill.
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