The GST Council is expected to consider imposing a 28 percent GST on cryptocurrencies. The government wants cryptocurrency to be on par with lotteries, casinos, racetracks, and betting.
The GST Council has appointed a law committee to consider the idea to impose a 28% Goods and Services Tax on all services and activities related to cryptocurrency as soon as possible. The legal committee’s recommendation will be presented to the GST Council for formal approval.
The idea is to be presented at the next GST Council meeting, but no date is fixed yet.
According to the reports, all crypto exchanges in India serve as intermediaries.
“They sell cryptos from foreign exchanges to people in India. So, this is a service,”
“and currently, this is at 18 percent GST slab and classified as an intermediary service.”
” They will have to be classified separately under a new head, under the list of services,”
“So, every transaction will be subject to 28 percent Goods and Services Tax, if agreed upon by the GST Council,”
Apart from the Goods and Services Tax, crypto investors must pay a 30% income tax, plus cess and surcharges, on gains from virtual digital asset transactions, as announced in the Budget for 2022-23. This took effect on April 1st.
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