Contrary to several media reports, the GST council is not going to impose 28 per cent GST on crypto services, sources at the Finance Ministry told Business Today.
“No proposal of 28% GST on crypto services. Crypto services will not to be treated at par with online gaming”, the source told Business Today.
Multiple media sources reported recently that the GST council is considering a 28 per cent tax on cryptocurrency, similar to the present GST on online gaming, casinos, betting, and lottery.
Those reports also claimed that services like crypto mining, as well as sales and purchases, would be subjected to the 28 per cent GST.
The recent Union Budget slapped a flat 30 per cent tax on all crypto gains plus a one per cent TDS. This led to a steep drop in trading volumes across all KYC compliant cryptocurrency exchanges in the country.
Moreover, KYC compliant exchanges also came under heat from NPCI. The regulator released a statement that it is not aware of any Indian exchange allowing its customers to buy cryptocurrencies via UPI after Coinbase exchange’s very public launch in India.