Officers’ committee proposes postponement of decision on levying GST on crypto
New Delhi:
The GST Officers Committee has proposed to the GST Board to defer a decision on the cryptocurrency and other virtual digital asset taxes.
In its report to the GST Council, the Fitment Committee suggested that a law on cryptocurrency regulation is awaited. Identifying all relevant supplies related to the crypto ecosystem would be essential, in addition to classifying whether they are goods or services.
The Center and States officers’ committee, called the Fitment Committee, felt that a deeper study was needed on the issues involved in the crypto ecosystem.
It has been decided that Haryana and Karnataka will study all aspects and present a paper to the Assembly Committee in due course.
The committee felt that it was necessary to identify all relevant necessities related to the crypto ecosystem under the scope of GST; their nature, whether those activities are goods or services, and the applicable rate.
Therefore, it suggested that the Council postpone a decision on cryptocurrency taxation at its next meeting on June 28-29.
The 2022-23 budget has clarified the levy of income tax on crypto assets; However, in the field of the Goods and Services Tax (GST), the classification of cryptocurrency, whether goods or services, is still unclear.
As of April 1, 30 percent income tax plus taxes and fees will be levied on such transactions in the same way as horse racing profits or other speculative transactions.
A 1 percent TDS for payments over Rs 10,000 to virtual currencies has also been introduced, which will come into effect from July 1.
The threshold for TDS would be Rs 50,000 per year for certain individuals including individuals/HUFs who are required to have their accounts audited under the IT law.
