- The meeting proposed to levy a 28 percent GST on cryptocurrencies.
- India plans to implement reverse charge GST on users who use overseas crypto sites.
On Tuesday India’s Goods and Services Tax (GST) Council is expected to discuss rate rationalization and digital assets, including cryptocurrency, at its upcoming meeting in June.
India’s Goods and Services Tax Council has been considering including cryptocurrencies in the tax system for a long time. Now the GST council decided to hold a meeting to discuss digital asset taxation, this meeting will take place in the second half of June.
GST Council Plans to Tighten Crypto Taxes
The government had been implementing a reverse charge GST on users who use overseas cryptocurrency sites. The GST would be in addition to the heavy taxation on cryptocurrencies that investors in India.
The committees could also set guidelines for GST panels, and tribunals have long been a requirement of the industry in order to reduce and simplify litigation. The major states like Maharashtra, Tamil Nadu, Uttar Pradesh, and Rajasthan will have multiple tribunals.
Then there’s the possibility of an additional 28% GST for crypto investors. It might either be liable to this or to 18% GST.
Furthermore, the Finance Ministry of the government implemented a 30% tax on any gains obtained from virtual assets in April. also implemented a 1% tax-deductible at source (TDS) on all cryptocurrency transactions.
The TDS is used to keep track of transactions and is given back to investors at the closing of each fiscal year. However, many Indian crypto investors have left the market due to the loss of liquid capital.