GST will be implemented on cryptocurrencies soon! Decision will be taken next week

New Delhi: The Goods and Services Tax (GST) Council will meet in Chandigarh next week. The meeting will discuss whether GST should be implemented on cryptocurrencies. According to a Bloomberg report, the meeting is to be held on June 28 and 29. If GST is implemented on cryptos, it could further spoil the mood of […]
 


GST will be implemented on cryptocurrencies soon!  Decision will be taken next week

New Delhi: The Goods and Services Tax (GST) Council will meet in Chandigarh next week. The meeting will discuss whether GST should be implemented on cryptocurrencies. According to a Bloomberg report, the meeting is to be held on June 28 and 29. If GST is implemented on cryptos, it could further spoil the mood of investors as the council may place digital tokens under the top slab of 28 per cent.

According to a recent FAQ by the Central Board of Direct Taxes (CBDT), 1 per cent TDS on cryptocurrency transfers was introduced in the Budget 2022 with effect from July 1. In the Budget for 2022, Finance Minister Nirmala Sitharaman announced 30 percent income tax on cryptocurrency. Apart from this, 1 per cent TDS was announced on transfer of virtual digital assets. The 30 per cent rule is applicable from April 1.

Crypto investors are already in trouble. Bitcoin fell more than 60% from its peak in November 2021. Many stablecoins, such as Luna, have lost 90 percent of their value. The digital token is expected to drop in value as central banks raise their interest rates to meet inflation.