Mr. Bachchan owed INR 1.09 crores in GST on the sale of his NFT.
Veteran Bollywood actor Mr. Amitabh Bachchan is one of the first Indian artistes to have embraced crypto.
Last year Mr. Bachchan launched his Non-Fungible Token (NFT) collection with BeyondLife.club.
His NFTs fetched INR 7.15 crores in an auction in November 2021.
Mr. Bachchan received a notice from the Directorate General of Goods and Services Tax Intelligence (DGGI), regarding the payment of tax dues from the proceeds of the auction. Consequently, he paid INR 1.09 crores, reported Business Standard.
Bachchan could not be reached for a comment. The sale had fetched INR 7.15 crore and would attract 18 per cent IGST. The tax liability from the sale is INR 1.09 crore.
The case is still not closed as tax authorities have continued investigation
Now NFTs will also be brought under the Income Tax provisions under the new tax regime. This may prompt tax authorities to investigate investors trading in cryptocurrencies and NFTs.
But NFTs will have a special designation. They might not be considered the same as cryptocurrencies. The Government will specify NFTs by notification in the Official Gazette.
Indian Government is aware of the country’s prowess in Information Technology (IT). That’s why it may not dissuade anyone from embracing NFTs. But it is cautious about the currency or payments aspect of crypto.
The Reserve Bank of India (RBI) has also vehemently opposed cryptocurrencies citing macroeconomic risks. As long as the central bank is against crypto, it would be difficult for the industry to gain any ground in India.
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