Next week, India will Discuss a 28% GST on Crypto Transactions
- In Chandigarh, federal and state finance ministers will meet.
- Indian crypto exchanges now charge 18% GST.
- The report claimed authorities want to extend the tax net and follow virtual digital asset transactions more effectively.
The Indian government is reportedly considering implementing a goods and services tax (GST) on cryptocurrency transactions.
This move comes as the country’s tax authorities meet for two days starting June 28 to discuss the matter. According to Bloomberg, citing unidentified sources, the GST on crypto transactions is being considered to boost revenue collection.
If implemented, this would be a major development for the cryptocurrency industry in India. The country has been cautious in its approach to digital currencies so far and has even banned banks from providing services to crypto exchanges. However, with GST being levied on crypto transactions, it would signal a change in stance from the authorities.
The panel, which includes finance ministers from across the country, will discuss the implementation of the Goods and Services Tax (GST). The GST is a major tax reform introduced in India in 2017.
The meeting comes when there are concerns about the sluggish growth of the Indian economy. GDP growth slowed to 6.8%, down from 7.5% in the previous quarter. This has led to calls for more government action to boost growth.
The finance ministers are expected to discuss a range of issues related to the economy, including taxation and government spending. They will also review the progress of implementing the GST and make suggestions on how it can be improved.
The application of GST to crypto transactions in India has been a matter of some debate. The 18% rate was initially proposed by the country’s tax authority, but it was met with opposition from the crypto industry.
However, after further discussion, it was decided that the GST would be applied to crypto transactions at a rate of 18%. This decision has come as a relief to many in the industry, as it provides clarity on the tax treatment of crypto assets in India.
Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.
