An Indian industry association has written to the country’s finance minister seeking clarity on cryptocurrency taxation in Union Budget 2022-23. “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.”
Industry Wants Clarity in Crypto Tax Laws in Union Budget 2022-23
Indian industry association Indiatech has written to the country’s finance minister, Nirmala Sitharaman, regarding cryptocurrency taxation. 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 taxation in Union Budget 2022-23. The industry body also urged the government to amend existing tax laws to include crypto assets. Indiatech’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 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 firms for tax evasion.
The DGGI recently raided major cryptocurrency exchanges and discovered “massive” GST evasion. The crackdown reportedly uncovered tax evasion worth about Rs 70 crore ($9.4 million). Crypto exchanges blamed confusion over tax laws as the reason for failing to pay taxes properly.
Indiatech has urged Finance Minister Nirmala Sitharaman to recognize cryptocurrencies as digital assets, instead of currencies. The industry association has also recommended levying a flat 18% GST only on exchanges’ commissions.
India still has no law directly governing crypto assets. 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.
Do you think the government will mention cryptocurrency in the Union Budget this year? Let us know in the comments section below.
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