Govt may bring crypto deals under GST
A decision on classification as goods or services under the GST law is yet to be finalised before levy of tax
New Delhi: The government is working on classification of crypto currency as goods or services under the GST law, so that tax can be levied on the entire value of transactions.
Currently, 18 per cent Goods and Services Tax (GST) is levied only on service provided by crypto exchanges and is categorised as financial services. GST officers are of the view that cryptos, by nature, are similar to lottery, casinos, betting, gambling, horse racing, which have 28 per cent of GST on the entire value. Besides, GST at 3 per cent is levied on the entire transaction value in case of gold.
"There is a clarity needed in regard to levy of GST on crypto currencies and whether it has to be levied on the entire value, We are seeing whether crypto currencies can be classified as goods or services and also removing any doubt on whether it can be called an actionable claim," an official said.
Another official said that if the GST is levied on the entire transaction of crypto currencies then the rate could be in the range of 0.1 to 1 per cent.
