After 30% tax and 1% TDS, the crypto industry could now be slapped with GST (goods and service tax).
The Government of India is reportedly working on classification of crypto as goods or services under the GST law. This will help the Government in levying tax on the entire value of transactions.
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As per the current rules, 18% tax is levied on the service provided by crypto exchanges categorised as financial services.
News agency PTI recently reported that GST officers were viewing crypto as similar to lottery, casinos, betting, gambling and horse racing, which have 28% GST on the entire value plus 3% more in case of gold.
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An official was quoted as saying that clarity was required on whether to impose GST on entire value in case of cryptos and whether they can be classified as goods or services. The report further quoted an official as saying the GST rate in entire crypto transactions could be in the range of 0.1% to 1%.
The government on Monday said Rs 95.86 crore has been recovered from 11 cryptocurrency exchanges for evasion of Goods and Services Tax (GST). The total amount includes penalty and interest. Zanmai Labs (WAZIRX), Coin DCX, CoinSwitch Kuber, Buy Ucoin, UnoCoin and Flitpay were among the exchanges that were involved in GST evasion cases.