Indian Tax Authorities Mulling Highest 28% GST Slab for Crypto Activities: Report

The Indian government’s strict stance on the crypto sector seems to be gathering more steam. In the latest development, the Goods and Service Tax (GST) Council reportedly plans to impose the highest 28% GST slab for crypto activities.

Digital Assets at Par With Gambling
Quoting unnamed sources, media reports suggested that the thinking in the GST Council is that crypto activities should be treated at par with casinos, lottery, gambling, and horse racing. All these endeavors with speculative nature attract 28% GST.

Right now, 18% GST is levied on crypto exchanges, considered as intermediaries selling assets from foreign crypto exchanges to Indian people and formally categorized as financial services.

As per the reports, the GST council has constituted a law committee to study different digital asset activities such as trading, wallet services, and staking to prepare their tax recommendations.

“There are various aspects of cryptocurrencies – the transactions involving cryptos, cryptos being used to make purchases, cryptos being received as payments. All these aspects are under examination and will be discussed by the law committee,” CNBCTV18 quoted an unnamed source as saying.

Source: https://cryptopotato.com/indian-tax-authorities-mulling-highest-28-gst-slab-for-crypto-activities-report/