Indian tax authorities are exploring the implementation of a 28% goods and services tax (GST) on all cryptocurrency transactions, adding to a 30% tax on profits from crypto asset trading that kicked in on April 1, according to local media reports.
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- The government’s aim is to bring cryptocurrency taxation on par with taxes on lotteries, casinos and other forms of betting.
- Crypto transactions on Indian exchanges are currently subject to an 18% GST.
- The move comes after state finance ministers reached a unanimous decision last month to increase the tax rate for horse racing, casinos, and online gaming.
- The GST Council, which governs the rules on the goods and services tax, has nominated a law committee to suggest changes to the fitment committee, which will decide on the GST rate for crypto.
- The proposal of the fitment committee will be sent to the GST Council for final approval.
- A 1% tax for transactions exceeding INR 10,000 (US$130), and INR 50,000 (US$648) for specified individuals per year, will come into effect on July 1, 2022.
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