The proposal is likely to be tabled in the next GST Council meeting, but no decision has been taken on the date yet.
“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,” sources said.
“So, every transaction will be subject to 28 percent GST, if agreed upon by the GST Council,” the sources added.
Online gaming (without betting) attracts 18 percent GST right now. However, the ones involving betting along with gambling, race clubs, attract 28 per cent.
Earlier this month, the panel of state finance ministers was unanimous on hiking the GST rate on casino, race course and online gaming services to 28 percent, West Bengal finance minister Chandrima Bhattacharya had said. However, a call on whether the tax should be levied on gross or net valuation was to be taken after further deliberations.
The Budget also proposed a 1 percent TDS on payments towards virtual currencies beyond Rs 10,000 in a year and taxation of such gifts in the hands of the recipient. The threshold limit for TDS would be Rs 50,000 a year for specified persons, which includes individuals/HUFs who are required to get their accounts audited under the I-T Act. The TDS will come into effect from July 1.
Apart from all the taxes, traders also shell out some money as trading fee to exchanges.
With inputs from PTI
First Published: IST
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