In a letter to India's finance minister, a business group is requesting clarification on cryptocurrency taxes in the Union Budget 2022-23. "Ideally, the budget should establish consistent direct taxing laws, and the GST Council should specify the taxation's applicability; otherwise, there would be misunderstanding."

In the Union Budget 2022-23, the industry wants clarity on crypto tax laws.

Indiatech, an industry organisation in India, has written to Nirmala Sitharaman, the country's finance minister, about bitcoin taxes. Coinswitch Kuber, Wazirx, and Coindcx are among the major cryptocurrency exchanges represented by the group.

The group requested clarification on crypto taxes in the Union Budget 2022-23 in a letter to the finance minister. The trade group also requested the government to change current tax legislation to cover crypto assets. Rameesh Kailasam, president and CEO of Indiatech, told Ettech:

Otherwise, there would be misunderstanding. The budget should ideally establish unambiguous guidelines on direct taxation, and the GST Council should specify the applicability of taxation.

Some bitcoin exchanges have been accused of avoiding paying the goods and services tax (GST) (GST). Several crypto businesses are being investigated by India's Directorate General of Goods and Services Tax Intelligence (DGGI) for tax evasion.

The DGGI investigated major cryptocurrency exchanges lately and found "massive" GST avoidance. According to reports, the raid unearthed tax evasion totaling Rs 70 crore ($9.4 million). The failure to pay taxes properly has been attributed to a lack of understanding of tax regulations, according to crypto exchanges.

Finance Minister Nirmala Sitharaman has been asked by Indiatech to recognize cryptocurrencies as digital assets rather than money. The business group has also proposed imposing a flat 18 percent GST on exchange charges exclusively.

There is currently no legislation in India that governs crypto assets directly. The Indian government is apparently rewriting a cryptocurrency law that was scheduled to be addressed during the winter session of parliament but was not taken up.