India is Working on Crypto Classification

The Indian Government is currently working on the classification of cryptocurrency as goods or services under the GST law. This is being done so the tax could be imposed on the entire value of transactions. At the moment, 18 percent Goods and Services Tax (GST) is charged only on services provided by crypto exchanges and it comes under the category of financial services. According to GST officials, they consider cryptos by nature similar to lottery, casinos, betting, gambling, horse racing. These attract a GST of 29 percent on the entire value. Other than this, GST at 3 percent is levied on the entire transaction value in the case of gold. A GST official said: "There is a clarity needed in regard to levy of GST on cryptocurrencies and whether it has to be levied on the entire value, We are seeing whether cryptocurrencies can be classified as goods or services and also removing any doubt on whether it can be called an actionable claim." Another Official talking about the Probable GST rates on crypto said: "Discussions are in a nascent stage on the rate of tax, whether it would be 0.1 percent or 1 percent. First, a decision on classification will have to be finalized and then the rate will be discussed."