The Indian government is looking to levy a 28% Goods and Services Tax on crypto and NFT transactions, local media Press Trust of India reported Sunday.
Goods and Services Tax is a type of indirect tax that replaced a myriad of other taxes, including value-added tax, service tax, purchase tax, excise duty, and several others after it was implemented by the current government in 2017.
As per the report, GST officials believe that cryptocurrencies should be included in the likes of lottery, casinos, betting, gambling, and horse racing, all of which are subjected to a 28% tax slab. An official familiar with the matter told PTI in an interview:
“There is a clarity needed in regard to levy of GST on cryptocurrencies and whether it has to be levied on the entire value. We are seeing whether cryptocurrencies can be classified as goods or services and also removing any doubt on whether it can be called an actionable claim.”
The news comes barely two months after the country’s Finance Ministry imposed a 30% tax on income generated from digital assets as well as a 1% TDS on crypto transactions. Meanwhile, crypto exchanges are required to pay 18% GST to provide their services in the country.