An Indian industry association has written to the country’s finance minister seeking clarity on taxes on cryptocurrencies in the Union Budget 2022-23. “Ideally, the budget should offer consistent rules on direct taxes and the GST Council should spell out the applicability of taxes, otherwise there will be confusion.”
Industry wants clarity on crypto tax laws in Union budget 2022-23
Indian industry association Indiatech has written to the country’s finance minister, Nirmala Sitharaman, regarding taxes on cryptocurrencies. The association represents major cryptocurrency exchanges in India, including Coinswitch Kuber, Wazirx, and Coindcx.
In its letter, the association asked the finance minister for clarity regarding crypto taxes in the Union Budget 2022-23. The industry body also urged the government to amend existing tax laws to include crypto assets. Indiatech President and CEO Rameesh Kailasam told Ettech:
Ideally, the budget should provide consistent rules on direct taxes and the GST Council should detail the applicability of taxes, otherwise there will be confusion.
Some cryptocurrency exchanges have been accused of evading the goods and services tax (GST). India’s Directorate General of Goods and Services Tax Intelligence (DGGI) is examining various crypto companies for tax evasion.
The DGGI recently raided major cryptocurrency exchanges and discovered a “massive” evasion of GST. The crackdown reportedly uncovered a tax evasion worth approximately Rs 70 million ($ 9.4 million). Crypto exchanges blamed confusion over tax laws as the reason why taxes were not being paid correctly.
Indiatech has urged Finance Minister Nirmala Sitharaman to recognize cryptocurrencies as digital assets, rather than currencies. The industry association also recommended charging a fixed GST of 18% only on commissions from exchanges.
India does not yet have a law that directly governs crypto assets. A cryptocurrency bill was included for consideration in the winter session of parliament but was not taken up, and the Indian government is now reportedly reworking the bill.
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