India to implement GST on cryptocurrency

[williamcll]

Cryptocurrency's legality has always been under questioned in India, however they may soon change as GST may soon be added to crypto sales.

Quotes

Quote

An Indian ministerial panel will meet next week to discuss a goods and services tax on cryptocurrency transactions, people with knowledge on the matter said. The panel, comprising federal and states' finance ministers, is seeking to broaden the tax net to track dealings in virtual digital assets in a more effective manner, the people said, declining to be identified citing rules on speaking with media. The panel is meeting for two days starting June 28 in the northern Indian state of Chandigarh. The panel is unlikely to finalize a rate in the upcoming meeting but discussions may be held on placing it in the highest tax slab of 28%, the people said.

 

The move was seen as removing uncertainty about the legal status of crypto transactions. However, there is still no clarity on imposition of a sales tax on digital currencies due to ambiguity in its treatment as goods or services and a lack of a regulatory framework. The federal government is already working on a legislation to either regulate or tighten provisions though it is expected only after a global consensus emerges on regulating such assets, Bloomberg had earlier reported.

 

My thoughts

Probably the worse time to be implementing GST now that the price for most crypto are dropping. Even if it goes up later on it will be harder for people to turn a profit.

 

Sources

https://www.ndtv.com/business/crypto-sales-tax-at-28-discussions-next-week-3091705#:~:text=Earlier this year%2C Finance Minister,the country and track users.

[Roswell]

36 minutes ago, williamcll said:

Even if it goes up later on it will be harder for people to turn a profit.

Good. Cryptocurrency is massively wasteful and almost exclusively spent on scams and illegal activity.

 

If government regulation helps nail the coffin I’m all for it.

[Poinkachu]

I actually find it weird that all this time countries hasn't tried to put tax on it.

[Donut417]

1 hour ago, williamcll said:

Probably the worse time to be implementing GST now that the price for most crypto are dropping. Even if it goes up later on it will be harder for people to turn a profit.

I mean. The US taxes it as well. Though we treat it as more of an investment. For example if you keep crypto for a year or more then sell it, you could be subject to capital gains taxes. The only certainty in life is Death and Taxes. 

[Fasterthannothing]

7 hours ago, Donut417 said:

I mean. The US taxes it as well. Though we treat it as more of an investment. For example if you keep crypto for a year or more then sell it, you could be subject to capital gains taxes. The only certainty in life is Death and Taxes. 

I was going to say people like to pretend crypto isn't taxed but that's not true it's already taxed in the US

[Giganthrax]

Good. We're fucking up the environment enough as it is, dont need crypto energy wasting as well.

[StDragon]

On 6/22/2022 at 10:03 PM, Donut417 said:

I mean. The US taxes it as well. Though we treat it as more of an investment. For example if you keep crypto for a year or more then sell it, you could be subject to capital gains taxes. The only certainty in life is Death and Taxes. 

It gets more complicated, but yes, there's a tax on capital gains. But there's already discussion for FY 2023 to tax unrealized capital gains. That means you would pay taxes simply holding an asset that appreciates in value even if none of it has been liquidated!

[Quackers101]

but to make it less complicated, one can only use legal country based wallets for crypto.

If not going through those means would be illegal, jk.

[suicidalfranco]

13 hours ago, StDragon said:

It gets more complicated, but yes, there's a tax on capital gains. But there's already discussion for FY 2023 to tax unrealized capital gains. That means you would pay taxes simply holding an asset that appreciates in value even if none of it has been liquidated!

I.e.: taxation is theft