After a 30% tax on income from crypto-verse transactions and the upcoming 1% tax deduction at source (TDS), the Indian government may now think about putting its goods and services tax (GST) on these money transfers as well.
The GST Council is set to discuss the GST on crypto transactions at its meeting next week. According to a media report, the panel may still not finalize a rate at the meeting scheduled, but conversations may take place about putting it in the top tax bracket of 28%.
1% TDS On Crypto To Kick In From July 1 In India.
— Crypto Kanoon (@cryptokanoon) June 21, 2022
Recent developments regarding the newly enacted TDS on cryptocurrency laws
The tax is necessary to be paid back or deducted at the moment of credit or transfer of funds to the registered person, whichever comes first. The tax will be allowed to be deductible only if the amount of money paid exceeds the threshold restriction. The committee will be made up of finance ministers from the nation’s state and central governments. It will last for two days, beginning June 28 in Chandigarh.
An additional tax on the crypto market, on the contrary, could be problematic for the nation’s cryptocurrency exchanges and brokers. During the Union Budget speech in February of this year, the Minister of Finance, Nirmala Sitharaman, said that money made from cryptocurrency transactions and communications would be taxed at a rate of 30%.
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