Indiatech, an industry organisation in India, has written to Nirmala Sitharaman, the country’s finance minister, about bitcoin taxation. Coinswitch Kuber, Wazirx, and Coindcx are among the major cryptocurrency exchanges represented by the group.
The group requested clarification on crypto taxes in the Union Budget 2022-23 in a letter to the finance minister. The trade group also requested the government to change current tax legislation to cover crypto assets. Rameesh Kailasam, president and CEO of Indiatech, 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 bitcoin exchanges have been accused of avoiding paying the goods and services tax (GST) (GST). Several crypto businesses are being investigated by India’s Directorate General of Goods and Services Tax Intelligence (DGGI) for tax evasion.
The DGGI investigated major cryptocurrency exchanges lately and found “massive” GST avoidance. According to reports, the raid unearthed tax evasion totaling Rs 70 crore ($9.4 million). The failure to pay taxes properly has been attributed to a lack of understanding of tax regulations, according to crypto exchanges.
Finance Minister Nirmala Sitharaman has been urged by Indiatech to recognize cryptocurrencies as digital assets rather than money. Also, The industry group has also proposed imposing a flat 18 percent GST on exchange commissions exclusively.
Lastly, There is currently no law in India that governs crypto assets directly. Then, The Indian government is apparently rewriting a cryptocurrency bill that was scheduled to be addressed during the winter session of parliament but was not taken up.
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