GST council might slap 28% tax on crypto transactions
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New Delhi: Stomping crypto investors further down, the goods and services tax (GST) council is considering slapping 28 per cent GST on cryptocurrencies as the current GST on casinos, betting and lottery. Media reports on Monday claimed that if the proposal goes through the next GST meeting, crypto services such as mining, sales, and purchases will attract 28 per cent GST, IANS reported.
The services such as crypto mining along with sales and purchases are likely to attract the 28 per cent GST if the proposal goes through in the next GST meeting, according to reports. However, the next GST meeting schedule has not been finalized yet.
This comes, if it gets passed, in addition to the 30 per cent tax already imposed by the Union Finance Ministry on profits made through cryptocurrency transfers, and the tax is effective from April 1. This was announced in the Union Budget 2022-23, presented by Finance Minister Nirmala Sithraman in February.
Further, the 30 per cent tax includes 1 per cent TDS (tax deducted at source) crypto transactions over a certain threshold. Also, Gifts in crypto and digital assets are taxed. The Income Tax Act, 1961, a new section 115BBH' added to tax digital assets.
Addressing a seminar last month, Sitharaman expressed her concerns on cryptocurrencies, saying that without a worldwide regulating mechanism accepted by all the countries, the currency will be used for money laundering and terrorism funding, adding that both are big concerns for India.