India Considers Imposing 28% GST on All Crypto Transactions: Report – Taxes Bitcoin News

Bitcoin.com

The Indian government is reportedly considering imposing a 28% goods and services tax (GST) on all crypto transactions. “Currently tax is levied only on the part of the services provided by crypto exchanges. Subjecting the whole transaction to tax at a higher slab of 28% could give the markets a free fall,” one tax expert warned.

Council Mulls Over 28% GST on Crypto Transactions

India’s Goods and Services Tax (GST) Council will soon make a decision on whether to expand the scope of applicable transactions and levy a 28% GST on all services and activities related to cryptocurrencies, CNBC TV18 reported Monday.

How To Get Free Crypto  

The GST Council is the apex decision-making body chaired by the country’s finance minister. The council has nominated its law committee to form a view on the GST issue relating to cryptocurrency. Sources told the publication:

There are various aspects of cryptocurrencies — the transactions involving cryptos, cryptos being used to make purchases, cryptos being received as payments. All these aspects are under examination and will be discussed by the law committee.

“Tax proposals will be analyzed by the law committee, which will recommend its views to the GST Council for its consideration,” one person familiar with the matter was quoted as saying.

The sources explained that crypto exchanges in India are currently classified as “an intermediary service” and are taxed at 18% GST. “They will have to be classified separately,” the sources noted, adding:

Every transaction will be subject to 28% GST, if agreed upon by the GST Council.

The GST rate for online gaming (without betting) is currently 18%. However, online games involving betting or gambling are taxed at 28% GST.

Coinbase Banner  

A number of parliament members have demanded that cryptocurrency transactions be treated as gambling. One person familiar with the issue explained: “Several MPs demanded to raise GST on cryptocurrencies to 28% like gambling and lotteries. As Parliament is an apex body, their demands will also be examined by the law committee.”

Commenting on the Indian government expanding the type of transactions that are subject to GST, Saket Patawari, an executive director at tax consultancy firm Nexdigm, opined:

Currently tax is levied only on the part of the services provided by crypto exchanges. Subjecting the whole transaction to tax at a higher slab of 28% could give the markets a free fall.

Cryptocurrency income is currently taxed at 30% in India. Moreover, a 1% tax deducted at source (TDS) will start being levied on crypto transactions on July 1.

Meanwhile, the Indian government is working on the country’s crypto policy. Finance ministry officials have been consulting with the International Monetary Fund (IMF) and the World Bank on cryptocurrency regulation.

FreeBitcoin Banner  
Tags in this story

Do you think India will decide to impose a 28% GST on all cryptocurrency transactions? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Read disclaimer

Go to Source
Author: Kevin Helms


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.