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India to Classify GST on Crypto

Government is yet to classify GST on crypto.

The new crypto tax regime will begin from April 1. It seems like more changes will be announced in the upcoming Financial Year 2022-2023.

Government of India is working on the classification of crypto under the Goods and Services Tax (GST) law, reported Business Standard which sourced it from PTI.

Currently, 18% GST is levied only on services provided by crypto exchanges.

GST officers see crypto as similar to lottery, casinos, betting, gambling, horse racing, which have 28% of GST on the entire value.

“There is a clarity needed in regard to levy of GST on cryptocurrencies and whether it has to be levied on the entire value, We are seeing whether cryptocurrencies can be classified as goods or services and also removing any doubt on whether it can be called an actionable claim.”

GST Official

Another official revealed that if “GST is levied on the entire transaction of cryptocurrencies then the rate could be in the range of 0.1% to 1%.”

“Discussions are in a nascent stage on the rate of tax, whether it would be 0.1 per cent or 1 per cent. First a decision on classification will have to be finalised and then rate will be discussed,” the official told PTI.

The new tax regime has brought clarity for filing income tax on crypto generated gains. However, crypto’s status under the GST law is still unclear. The tax policy on crypto will see constant evolution in the coming Financial Year of 2022-2023.

News recommendation: Crypto Apps Grew 401% Annually & 902% in the October-December Quarter of 2021

Cover Photo Source: Freepik

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