The Indian government is working to determine whether cryptocurrencies can be classified as goods or services, which could impose different taxation schemes on digital assets. Indian government officials believe that crypto transactions are similar to gambling and lotteries, the latter of which is subject to a 28 percent goods and services tax (GST).
Currently, cryptocurrencies are classified as financial services in India and 18% GST is levied on transactions on exchanges.
As previously reported, India’s finance minister, Nirmala Sitharaman, announced plans in February to impose a 30 percent tax on crypto income and deduct a 1 percent tax at source (TDS) on each transaction. The deputy governor of India’s central bank even suggested an outright ban on cryptocurrencies. The Indian government is working on cryptocurrency legislation.
