The Indian government has refrained from suggesting that cryptocurrency is legal, but it is not waiting to tax people on any income generated by crypto transactions. According to reports, the finance ministry will now meet next week to discuss a goods and services tax (GST) on crypto.
The panel of federal and state finance ministers will meet in Chandigarh for two days starting June 28 to broaden the tax net to track transactions in virtual digital assets.
It is unlikely to finalize a rate in the upcoming meeting, but discussions about placing it in the highest GST bracket of 28% may happen.
As a reminder, earlier this year, Finance Minister Nirmala Sitharaman imposed a 30% tax on income from the transfer of virtual assets and a 1% tax at source on all crypto transactions in order to assess the size of the country’s crypto market and track users.
The Indian government refers to all cryptocurrencies and NFTs as “virtual digital assets.”
To impose sales tax on digital currencies, they must be classified as either goods or services, but there is a regulatory framework and clarity on this issue.
The Crypto Times has been consistently reporting on the Indian cryptocurrency scenario and tax structure.
According to an Indian government official, the virtual digital asset guidelines will be released by July 1, 2022. The law will determine several aspects of the crypto ecosystem that still remain uncertain.
