Business News : Cryptocurrency may attract 28% GST in addition to 30% tax

The Goods and Services Tax (GST) Council is considering levying 28 per cent GST on cryptocurrencies. According to a media report, the GST Council may discuss the proposal to tax cryptocurrencies in the upcoming meeting. The date of the meeting has not yet been decided. 

In the Union Budget 2022-23, Finance Minister Nirmala Sitharaman had proposed a 30 percent tax on income from transfer of virtual digital assets. The new rules have come into effect from April 1.

Profits from all virtual digital assets, including cryptocurrencies, will be taxed at 30 percent. Gains from virtual digital assets including cryptocurrencies are taxable even if the total income of the taxpayer is less than the limit of Rs 2.5 lakh. The imposition of 28 per cent GST will result in heavy taxation on cryptocurrencies. This will bring cryptocurrencies on par with casinos, betting and lotteries as far as the level of taxation is concerned.