Central Govt To Categorize Cryptocurrency Under GST Law - Vibes Of India

Gujarat News, Gujarati News, Latest Gujarati News, Gujarat Breaking News, Gujarat Samachar.

Latest Gujarati News, Breaking News in Gujarati, Gujarat Samachar, ગુજરાતી સમાચાર, Gujarati News Live, Gujarati News Channel, Gujarati News Today, National Gujarati News, International Gujarati News, Sports Gujarati News, Exclusive Gujarati News, Coronavirus Gujarati News, Entertainment Gujarati News, Business Gujarati News, Technology Gujarati News, Automobile Gujarati News, Elections 2022 Gujarati News, Viral Social News in Gujarati, Indian Politics News in Gujarati, Gujarati News Headlines, World News In Gujarati, Cricket News In Gujarati

Central Govt To Categorize Cryptocurrency Under GST Law

| Updated: March 21, 2022 12:39

The Indian Government is working on categorizing cryptocurrency under the Goods and Services Tax (GST) law so that the tax can be charged on the entire value of transactions. Currently, 18% GST is charged only on services provided by crypto exchanges.

GST officers believe that cryptos are similar to gambling and lottery, which currently have 28 % GST on their entire value. Besides, a GST of 3% is charged on the total transaction value in gold.

Also, there are discussions that if the GST is charged on the entire transaction of cryptocurrencies, the rate could be 0.1 to 1%.

The Goods and Services Tax law does not clearly state the classification of cryptocurrency. Due to the lack of a law regulating such virtual currencies, the classification must consider whether the legal framework can classify it as an actionable claim.

The actionable claim is an intangible movable property, and it is transferable. It refers to the types of claims that can be recovered through Courts.

The 2022-23 Budget has clarified the imposition of income tax on cryptocurrency. From 1st April, a 30% I-T plus cess and surcharges will be imposed on such transactions as it is considered in speculative transactions.

Budget 2022-23 also proposed a 1% Tax Deducted at Source (TDS) on payments of cryptocurrency beyond Rs 10,000 in a year and taxation to the recipient of such gifts. The starting limit for TDS would be Rs 50,000 a year for specific people, including individuals and Hindu Undivided Family (HUF), who are required to get their accounts audited under the I-T Act.

The provisions related to 1% TDS will come into effect from 1st July 2022, while the gains will be taxed effective 1st April. The Union Government is currently working on legislation to regulate cryptocurrencies. However, no draft has yet been publicly released.

Also Read: Saudi Aramco In Talks With Adani Group For Potential JV

Your email address will not be published. Required fields are marked *

%d