Indian Authorities to Discuss 28% Additional GST Tax on Crypto Next Week
Indian tax authorities will join a panel on 28-29 June to decide whether to implement an additional 28% tax on cryptocurrency transactions. If approved, the tax will be implemented in addition to the 30% crypto income tax already in place.
28% GST Tax on Crypto
According to a local media report, an Indian ministry panel, comprising federal and state finance ministers will meet next week to discuss a 28% goods and services tax (GST) on cryptocurrency transactions. Starting June 28, 2022, it has been said that the panel won't be able to finalize a rate during the two-day meeting, reportedly. However, it is certain that they’ll discuss placing cryptocurrency in the highest tax slab of 28%, the report added. The 28% tax was first proposed by India’s Goods and Service Tax Council (GST) in May 2022 and considered crypto the same as gambling, betting, and lottery.
Was 30% Tax Not Enough?
Earlier this year, India introduced new cryptocurrency legislation called Virtual Digital Assets (VDA). As per the new tax regime that went into effect on April 1, all gains from the sale of VDAs will face a tax of 30 percent. On top of that, a TDS of 1% will also be imposed on all crypto transactions starting July 1 in a bid to track users and access the size of the crypto market in the country.
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