At its upcoming meeting in June, India’s Goods and Services Tax (GST) Council is expected to discuss rate rationalisation and digital assets, including cryptocurrency.
For a long time, India’s Goods and Services Tax Council has considered incorporating cryptocurrencies into the tax system. The GST Council has now decided to hold a digital property tax conference in the second half of June.
The government has been forcing GST reverse tariffs on users who use foreign cryptocurrency trading. GST will outperform the existing heavy tax on cryptocurrencies for Indian investors.
Committees may also establish guidelines for GST panels and courts, which have long been an industry requirement to reduce and facilitate litigation. Multiple tribunals will be established in major states such as Maharashtra, Tamil Nadu (NS: TNNP), Uttar Pradesh, and Rajasthan.
Then there’s the possibility of an additional 28% GST for cryptocurrency investors. It may be subject to either this or an 18% GST.
Furthermore, in April, the government’s Finance Ministry imposed a 30% tax on any gains made from virtual assets. In addition, all cryptocurrency transactions now have a 1% tax deductible at source (TDS).
The TDS is a transaction tracking fee that is returned to investors at the end of each fiscal year. However, due to a lack of liquid capital, many Indian crypto investors have exited the market.
Read more: Indian finance ministry aims to exempt some transactions from crypto tax