Network18 Exclusive | GST Council to consider slapping highest 28% tax on cryptocurrencies

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The GST Council is considering levying 28 percent tax on cryptocurrencies and related services, sources told CNBC-TV18. The proposal is likely to be tabled in the next GST Council meeting.

According to the sources, the government’s view is to keep cryptos on par with lottery, casinos, betting and race courses. The law committee’s view will be tabled before the Council for a formal nod.

Also Read: Bitcoin on a tumble, cryptocurrency down 28 percent over the year

The date for the next GST Council meeting is yet to be decided.

Further, the guidelines making it mandatory for aggregators to redress consumer complaints in a stipulated timeframe are also being worked upon.

The proposal to levy highest GST slab of 28 percent will expand the indirect tax net on cryptocurrency related services.

In the Union Budget for FY2022-23, Finance Minister Nirmala Sitharaman had imposed 30 percent income tax on earnings from virtual digital asset transactions. As per the guidelines, such income will be taxable even if taxpayers’ total income is below the threshold limit of Rs 2.50 lakh. This proposal came into effect on April 1, 2022.

However, there we a lot of aspects like GST on crypto mining, sale & purchase, and their exchange value, that were unclear. Such services are likely to attract 28 percent GST once the proposal gets through.