According to local media reports, the Indian government might indirectly be stifling the country’s cryptocurrency sector. Reports state that the government might levy a 60% tax on the market if certain regulations are finalized.
At the moment, the government classifies cryptocurrency under its Good and Services Tax (GST), essentially in the same category as casinos and other establishments that offer to gamble and betting services. The government sees crypto in the same light and holds the market to an 18% GST tax, while the other platforms pay 28% in taxes.
In addition to crypto’s GST tax, India is looking at imposing a 30% capital gains tax and a Tax Deducted at Source (TDS) at 1%. Although the GST law does not specifically classify cryptocurrencies, GST officers are pushing that the crypto market is similar to lotteries, casinos, horse racing, and gambling. A rise in GST tax, in addition to capital gains tax and TDS, might push the Indian crypto industry into the 60% range.
However, it is possible that crypto does not suffer that fate. An official has said that the GST issue requires more clarity as to what exactly is taxable. According to the official:
“There is a clarity needed regarding levy of GST on cryptocurrencies and whether it has to be levied on the entire value.”
Image Credits: Pixabay
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