The Government is considering a special GST Slab for Cryptocurrencies and is working on an indirect tax regime for cryptocurrency assets, according to a report

The Government is considering a special GST Slab for Cryptocurrencies and is working on an indirect  ...

The finance ministry is currently researching the technological specifications of cryptocurrencies before contemplating a unique GST slab for digital assets. According to a recent paper, the government reportedly intends to ensure that the exchequer does not lose income due to the ambiguous nature of crypto assets.

According to a research by Mint, a new GST rate, which is between 18 percent and 28 percent, might be allocated to cryptocurrency assets. The finance ministry is reportedly working on defining the characteristics of cryptocurrency, and the digital assets in the country''s existing legal framework, before a new GST rate is decided.

"We are still examining the value of GST on crypto assets now, but it is levied on services. So we must see whether crypto assets are classified as good or services. We may have a special rate for this. It might not necessarily be 18 percent or 28 percent. Perhaps somewhere in between. We have a few discussions on it, and we will reach a decision soon.

The subject of crypto taxation by the country''s GST Council has been a heated one thus far. Back in May 2022, several reports suggested that the council planned to club crypto activities with speculative activities such as gambling, lottery, betting, and horse racing, which would increase the GST charged on cryptocurrency to 28 percent. At the time, the council had also established a committee to investigate and map various crypto activities such as trading, staking, and wallets to raise the amount of the tax.

Crypto exchanges are still being levied 18 percent GST and are considered as intermediaries offering financial services.

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