India Needs More Time to Clarify Crypto GST Regulation

• The CBIC is yet to conclude how to classify certain areas of crypto transactions.
• Transactions between parties outside of crypto exchanges and crypto mining are difficult to classify.
• Officials believe there is a need for international collaboration in forming crypto laws to avoid regulatory arbitrage.

The Indian Central Board of Indirect Taxes and Customs (CBIC) is yet to conclude how to classify certain areas of crypto transactions. These are areas not mainly involved with the sales of goods and the delivery of services. As a result, there is a delay in applying the Goods and Services Tax (GST) to such segments of the crypto industry.

According to reports, investigations on correctly categorizing such transactions are ongoing. The classification of transactions involving the transfer of crypto assets between parties outside of crypto exchanges and the mining of crypto assets are classic examples of areas that have proven to be complicated.

Official sources have stated that the lack of clarity over categorizing such transactions is why the regulators have yet to establish a unified policy for the entire industry. This lack of clarity stems from the fact t…

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