NEW DELHI: Multiple media sources reported on Monday that the GST council is considering a 28 percent tax on cryptocurrency, similar to the present GST on casinos, betting, and lottery, which might further damper the attitude of crypto investors in the country.
According to sources, services like crypto mining, as well as sales and purchases, will be subject to the 28 percent GST if the plan is approved at the next GST meeting. The date for the next GST meeting has not yet been set. Profits from the transfer of crypto assets and non-fungible tokens are already subject to a 30 percent tax imposed by the Ministry of Finance.
India distinguishes between cryptocurrencies and crypto assets, and in February, Union Finance Minister Nirmala Sitharaman announced a 30 percent tax on profits from these transactions, with a 1 percent deduction at source, as part of the Union Budget 2022-23. Her proposal to tax cryptocurrency revenues at 30 percent went into effect on April 1. The GST of 28 percent will be in addition to the 30 percent income tax on profits from crypto asset trades. TDS (tax deducted at source) of 1 percent applies to transactions in such asset classes above a specific level. Gifts of cryptocurrency and digital assets are also subject to taxation
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