The Ministry of Finance has already imposed a 30 percent tax on profits made from the transfer of crypto assets and NFTs. Finance Minister Nirmala Sitharaman announced the new tax on virtual digital assets transactions at the Union Budget 2022-23 session. Now, it looks like cryptocurrencies may face a further Goods and Services Tax (GST) soon, according to a report.
As per a report by CNBC TV-18, based on inputs from sources, the GST Council is considering levying a tax of 28 percent on cryptocurrencies and all related services. The proposal is said to be tabled at the next council meeting.
The report suggests that the Government of India is looking to keep cryptocurrencies on par with betting, lottery, and casinos. However, there has been no official word from the council on a 28 percent GST on crypto as of yet. The report also didn’t specify when the next GST Council meeting will be held.
The CNBC TV-18 report suggested that services such as crypto mining along with sales and purchases are likely to attract the 28 percent GST, if the proposal goes through.
Sitharaman’s proposal of levying a 30 percent tax on crypto earnings came into effect on April 1. As per the new guidelines, income for crypto will be taxable, even if a taxpayer’s total income is below the threshold limit of Rs 2.5 lakhs.
Bitcoin price, on Monday, dropped below $34,000. This marked a massive dip of 50 percent in the value of the world’s oldest and most valued cryptocurrency since its peak in November 2021.