The GST Council is likely to consider imposing 28 percent Goods and Services Tax on cryptocurrencies, various media reports claimed today (May 9, 2022).
As per the reports, the GST Council has constituted a committee which will soon take up the proposal to impose 28% GST on all actives and services related to cryptos. The proposal may be tabled before the GST Council in its next meeting.
Financialexpress.com couldn’t independently verify the claim made by these reports.
Cryptocurrency activities include sale and purchase of crypto tokens on various exchanges, holding these assets in centralised and decentralised wallets, and staking on various platforms. The GST Council may examine all these activities before arriving at a decision.
Reports on imposition of GST on cryptocurrencies have been doing the rounds ever since the Government announced flat 30% tax on income from cryptos and other virtual digital assets. 1% TDS will also apply on crypto transfers from July 1, 2022.
Currently 18% tax is levied on service provided by crypto exchanges.
New agency PTI had previously reported that the Government was viewing crypto at par with lottery casinos, betting, gambling and horse racing. All of these attract 28% GST on the entire value plus 3% more in case of gold (Read more details here).
(Cryptocurrencies and other virtual digital assets are not regulated in India. Investing in them could lead to losses. Please consult your financial advisor before making any investment decision)
(This report was first published on May 9, 2022)