India’s Government is set to discuss the levying of a goods and services tax (GST) on crypto transactions next week, reports said on Thursday.
According to a report by Bloomberg, the panel intends to broaden the scope of GST to bring digital assets under its fold.
While the panel has so far not decided on a rate, sources told Bloomberg that crypto may be placed under the highest slab, at 28%. This places the space alongside other items such as luxury cars, tobacco, and aerated drinks.
The move further highlights the Indian government’s apprehension towards crypto, given that the space already faces a steep 30% capital gains tax. Finance Minister Nirmala Sitharaman had also imposed a 1% tax on all crypto transactions.
India’s crypto stance still unclear
While the Indian government has outlined some tax regulation for cryptocurrencies, a bulk of the space remains largely unregulated in the country. The government is still in the process of laying out comprehensive legislation over crypto.
