At the next GST Council meeting, Indian officials are anticipated to discuss imposing a 28% goods and services tax on cryptocurrency.
According to CNBC-TV18, India’s leading indirect tax decision-making body, the goods and services tax (GST) Council, is set to address the future of indirect taxes.
According to insiders, a legal committee created by the GST Council would consider charging a 28% GST on services and other activities related to cryptocurrencies as soon as possible. The proposal will be brought to the GST Council for official approval.
The motion is expected to be introduced at the GST Council’s next meeting, which has yet to be scheduled.
India Finance Minister Nirmala Sitharaman recommended a 30% tax on earnings from cryptocurrency and other assets in the Union Budget 2022.
No deductions will be allowed, except for the cost of purchase, and no transaction losses will be allowed to offset gains. A new Section 115BBH has been added to the Income Tax Act of 1961, which applies to virtual digital assets.
Due to a lack of legislation in the country, the legal status of cryptocurrencies like Bitcoin is still uncertain. Investors claimed that the Union Budget’s cryptocurrency tax scheme effectively legalized crypto trading. According to Finance Minister Nirmala Sitharaman, taxing cryptocurrency does not make it legal. The situation is presently being investigated.
The GST Council is now seeking state input on hiking rates on 143 products, despite rising costs for major commodities.
According to sources, the GST Council may consider abolishing the 5% rate by lowering it to 3% for select mass-market goods and increasing it to 8% for the rest.
According to reports, the government also plans to raise the GST over the next two years and reduce the number of slabs. As a result, the government may be able to collect more taxes while also lowering inflation, which has hit a 17-month high.
GST receipts climbed to Rs 1,67,540 crore in April due to better compliance and a faster economic recovery. In March, there were 1,42,095 crores, up 25,000 crores from the previous month.
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