Key Takeaways:
- Indian government to impose GST on cryptocurrencies.
- The proposal is underway, however, no fixed date for its introduction has been announced by the GST council.
Earlier this year, the Finance Minister, Nirmala Sitharaman, imposed 30 percent taxes on crypto gains. However, debates regarding the legal status of digital assets in the country are ongoing. It has been revealed recently that the government also has plans to levy more taxes on cryptocurrencies.
CNBC TV18’s sources have informed us that The Goods and Service Tax Council might impose a 28 percent GST on virtual assets. The government has plans to give cryptocurrencies the same status as lottery, casinos, racecourses, and betting. The council has also appointed a law committee to look over the matter and to provide suggestions before it is confirmed.
It has also been revealed that the committee has already begun its work on the proposal. However, dates for the next meeting are yet to be decided. The sources of CNBC said, “The proposal is to levy 28 percent GST on services and all activities related to cryptocurrencies soon. The law committee’s view will be tabled before the fitment committee, and it is then for the fitment committee to suggest a rate, which is likely to be 28 percent, and post this, the proposal will be taken to the GST Council for a formal nod.”
