16 August 2022
The Indian GST council which is the highest decision-making body on indirect taxes is likely to consider levying a 28 percent goods and services tax on Cryptocurrencies. The authorities want to keep Cryptocurrencies at par with lotteries, casinos, racecourses and betting.
According to the sources, a GST Council-nominated law committee will share its view before the GST Council for formal approval.
This proposal will be tabled at the next GST Council meeting.
Earlier in the Union Budget 2022, Finance Minister Nirmala Sitharaman announced a 30 percent tax on gains on Cryptocurrencies and assets.
As of now, there is no clarity regarding the legality of Cryptocurrencies in India. After the Crypto tax, the investors said the provisions have effectively legalised Crypto trading. Although, Finance Minister Nirmala Sitharaman said taxing Cryptocurrencies does not mean it has been legalised.
According to reports, it also plans to raise the goods and services tax (GST) over the next two years and reduce the number of slabs. This might help the government to raise tax collections and reduce inflation which is already at a 17-month high of 6.95 percent.
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