Currently there is no GST on but there are TDS provisions on virtual digital assets (VDA) or cryptocurrencies. This became effective from July 1. There is a provision of 1 percent TDS on virtual payment of more than Rs 10,000 in a year.
The implementation of Goods and Services Tax (GST) on cryptocurrency might see more delay, as per a report by CNBC Awaaz. As of now, the panel of officers have not submitted their report to the government regarding the same. However, people in the know say a decision is targeted in the next meeting of the GST Council which is scheduled for December 17.
Currently, there is no GST but there are TDS provisions on virtual digital assets (VDA) or cryptocurrencies. This became effective from July 1. There is a provision of 1 percent TDS on virtual payment of more than Rs 10,000 in a year.
It is noteworthy that Finance Minister Nirmala Sitharaman announced to imposition of a 30 percent tax on income from cryptocurrency in the Union Budget 2022-2023.
According to the sources it is likely that in the GST council meeting it will be decided whether cryptocurrency will be included in the category of ‘Goods’ or
‘Services’ or not.
GST is to likely be levied only on the margin or service fee received from crypto currency. In other words, GST will not be implemented on the total value of cryptocurrency.
What else is on the agenda of the GST Council?
CNBC Awaaz has also learnt that the Group of Ministers (GoM) on Online Gaming and Casinos has not submitted its report.
As per the information received, GST rates on online gaming, casinos and horse racing are difficult to be agreed upon in the Group of Ministers. Last month PTI reported that the GoM panel is likely to stick with its earlier recommendation of a 28 per cent levy on these segments, while the final valuation mechanism will be logged on to the court of the GST Council.
In its earlier report submitted to the Council in June, the GoM, led by Meghalaya Chief Minister Conrad Sangma, proposed a 28 percent GST on the entire consideration, including contest entry fees, paid by the player, without distinguishing between skill games and chance games. The Council, however, had asked the GoM to reconsider its report.
The GST Council Group of Ministers will also consider a reduction in rates on insurance premiums. It can be reduced from the existing 18 percent to 12 percent. This will also be the main agenda in the next meeting of the GST Council.