Authorities in India want to introduce additional 28% goods and services tax on cryptocurrencies, CNBC reported†
India’s New 28% Tax on Crypto
According to the report, the Indian Goods and Service Tax Council is considering placing crypto investments in the same category as lotteries, casinos, racecourses and betting.
The report went on to say that the council had set up a law committee tasked with reviewing this proposal and coming up with a rate that would be acceptable to the council.
CNBC reported that its sources had said the law committee would look into various aspects of crypto, including its use as a payment method for goods and services and the angle of crypto exchanges in the country acting as intermediaries.
According to the report:
(Crypto-exchanges) sell cryptos from foreign exchanges to people in India. So this is a service, and currently this is 18 percent GST plate and classified as an intermediate service. Post the discussion to the law committee, this service will likely be classified under a different heading, under the list of services, where it can attract 28 percent GST if the law committee, the assembly committee and the GST council agree.
India and its litany of crypto taxes
CryptoSlate previously had reported that India was working to expand its crypto taxes with profits from decentralized financial (DeFi) activities.
The report said India’s Central Board of Direct Taxes (CBDT) had spoken with experts about how it could implement this.
Apart from that, the country also had introduced a 30% tax on all crypto winnings. This law does not allow deduction of losses, which means that all traders are adversely affected.
The Legal Status of Crypto Remains Vague in India
Despite all these tax measures, the legality of crypto in India remains unknown. Indian Finance Minister Nirmala Sitharaman Reportedly said that “taxing cryptocurrencies does not give them any legal status.”
this lack of regulatory clarity has prompted crypto exchanges operating in the country to suspend fiat deposits. Meanwhile, the founders of the largest crypto exchange in the country, WazirX † Nischal Shetty and Siddharth Menon – have been forced to move to Dubai because of this uncertainty.
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