India Considers Imposing 28% GST on All Crypto Transactions: Report Taxes Bitcoin News
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- The Indian government is reportedly considering imposing a 28% goods and services tax (GST) on all crypto transactions.
- The GST Council is the apex decision-making body chaired by the countrys finance minister. The council has nominated its law committee to form a view on the GST issue relating to cryptocurrency.
- Sources told the publication that crypto exchanges in India are currently classified as an intermediary service and are taxed at 18% GST.
- Tax proposals will be analyzed by the law committee, which will recommend its views to the GST Council for its consideration.
- If agreed upon by the GST Council, every transaction will be subject to 28% GST.
- The GST rate for online gaming (without betting) is currently 18%. However, online games involving betting or gambling are taxed at 28% GST.
- A number of parliament members have demanded that cryptocurrency transactions be treated as gambling.
- Cryptocurrency income is currently taxed at 30% in India. Moreover, a 1% tax deducted at source (TDS) will start being levied on crypto transactions on July 1.
- Meanwhile, the Indian government is working on the countrys crypto policy. Finance ministry officials have been consulting with the International Monetary Fund (IMF) and the World Bank on cryptocurrency regulation.
