The recent crackdown by India's Directorate General of GST Intelligence (DGGI) on nearly half a dozen cryptocurrency service providers has refocused attention on the need for clarification on how cryptocurrencies and associated services should be taxed.
WazirX, the world's largest cryptocurrency exchange, has paid Rs 49.2 crore in GST, plus interest and penalties, as part of the DGGI probe. While companies that provide cryptocurrency-related services have been on the radar of tax authorities due to tax evasion, cryptocurrency exchanges claim that the fundamental issue is a lack of regulatory clarity.
"We feel that regulatory certainty is critical for the Indian cryptocurrency business. It will also give us more clarity on taxation, allowing us to collaborate with legislators and remain responsible industry participants "WazirX is administered by Zanmai Labs Pvt. Ltd, according to a spokeswoman for the company.
Know Cryptocurrency prices today, Bitcoin trading above the USD 47,000