Tax Authorities to Examine Scope of GST Levy on Cryptocurrency

The finance ministry will meet with officials from the cryptocurrency business soon to examine the small print of indirect taxation on virtual digital assets.

Indirect taxes on virtual digital assets are being investigated by the Central Board of Indirect Taxes and Customs (CBIC). “It’s too soon to say whether the suggestion will be discussed at the next GST council.” Internally, we’re still looking at it. To gain clarity, we will also contact with bitcoin exchanges,” the official was cited as adding.

The Finance Ministry has already received multiple requests for clarification on the taxation regime from cryptocurrency industry participants.

During the Budget, the government suggested a direct tax on the transfer of any virtual/digital asset. These assets will be taxed at a rate of 30%, with no deductions except for purchase costs.

Source: ETCFO