May 11, 2022
By Sharan Kaur Phillora
The GST Council is likely to consider imposing 28 percent Goods and Services Tax on cryptocurrencies, as per reports.
Here’s what we know:
As per the reports, the GST Council has constituted a committee that will soon take up the proposal to impose 28% GST on all activities and services related to cryptos. The proposal may be tabled before the GST Council in its next meeting.
A number of parliament members have demanded that cryptocurrency transactions be treated as gambling. One person familiar with the issue explained: “Several MPs demanded to raise GST on cryptocurrencies to 28% like gambling and lotteries. As Parliament is an apex body, their demands will also be examined by the law committee.”
The GST Council is the apex decision-making body chaired by the country’s finance minister.
Reports on the imposition of GST on cryptocurrencies have been doing the rounds ever since the government announced a 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 services provided by crypto exchanges.
Meanwhile, the Indian government is working on the country’s crypto policy. Finance ministry officials have been consulting with the International Monetary Fund (IMF) and the World Bank on cryptocurrency regulation.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.