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GST Council mulling 28% tax on Bitcoin
May 10, 2022
In what could further dampen the mindset of crypto investors in the country, the goods and service tax (GST) gathering is mulling about a 28 percent charge on cryptocurrencies, at standard with the ongoing GST on casinos, wagering, and lottery, multiple media reports claimed on Monday.
The services, for example, crypto mining alongside sales and purchases from bitcoin 360 ai site officiel are probably going to attract the 28% GST if the proposal goes through in the next GST meeting, as per reports.
The Ministry of Finance has already imposed a 30 percent tax on profits made from the transfer of crypto assets and non-fungible tokens (NFTs).
India distinguishes cryptocurrencies and crypto assets, and Union Finance Minister Nirmala Sitharaman during the Union Budget 2022-23 in February announced a 30 percent tax on income from these transactions, which incorporates a 1 percent deduction at source.
Her proposition of levying a 30 percent tax on crypto earnings came into effect on April 1.
The 28% GST will be in addition to the 30% income tax on earnings from crypto assets transactions.
There is additionally 1% TDS (tax deducted at source) on transactions in such asset classes over a certain threshold. Gifts in crypto and digital assets are also taxed.
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