Livemint reported Monday that India’s finance minister is working on a comprehensive goods-and-services tax (GST). According to a source, the publication was informed:
The applicability and scope of GST to crypto assets is still being discussed. It is currently levied on services. We need to determine if crypto assets can be declared as a good, or a service.
Local media previously reported that the government was looking at imposing an 18% tax on crypto assets, or a 28 GST.
The source said that they could offer a special rate. It might not be 18% or 28%, but it could be somewhere in between. We’ve had some discussions about it and will soon make a decision.
Another source was also explained to the news outlet
Understanding how cryptocurrencies fit in to our legal system is a prerequisite for the determination of the GST rate.
GST will not apply to the entire asset’s value, but only the margin or service fee. The publication also stated that the government is examining how certain transactions are treated, such as mining or airdropped crypto tokens.
According to reports, a panel of Indian ministers met in June to discuss the GST tax on cryptocurrency transactions. The meeting was not reported by officials.
Indian authorities have already begun taxing crypto transactions and income. On April 1, a 30% tax was imposed on crypto assets income. A 1% tax deducted from source (TDS), on crypto asset payments, was also implemented on April 1.
The Indian government is working on its crypto policy. The government is working to make cryptocurrencies legal by the end of next year, in an effort to comply with the Financial Action Task Force (FATF). Indian Finance Minister Nirmala Sitharaman also called on the International Monetary Fund to play a leading role in creating a global framework for cryptocurrency.