The government is working to bring cryptocurrencies under the ambit of Goods & Services Tax ( GST ) in order to tax the entire value of transactions. Crypto exchanges are currently taxed at 18% slab of GST on services provided to users under the financial services category.
The government is working to bring cryptocurrencies under the ambit of Goods & Services Tax (GST) in order to tax the entire value of transactions. Crypto exchanges are currently taxed at 18% slab of GST on services provided to users under the financial services category.
GST officials are of the view that cryptos investing is akin to betting by nature and are therefore similar to casino, lottery, gambling, and horse racing, which are taxed at 28% of GST on the entire value, according to a PTI report. On the other hand, GST on transactions related to buying or selling gold is 3%.
“We’re looking at whether cryptocurrencies can be classified as products or services, and whether it can be deemed an actionable claim,” an GST officer told PTI.