Tax on digital assets could go up, govt mulling GST on crypto mining, supply
Source: Economic Times dated 10.02.2022
The government is examining the applicability of goods and services tax (GST) on various cryptocurrency transactions including mining of these digital assets.
The issue is being examined internally at the Central Board of Indirect Taxes and Customs (CBIC) and a proposal will be taken to the GST Council, CBIC chairman Vivek Johri said.
“There are several aspects of the operation which intersect with GST as a tax,” he said in an interview to ET. The budget has proposed a flat 30% capital gain tax on virtual digital currencies beginning April 1, 2022. The levy of GST on other transactions in them could rise the overall incidence of tax on cryptocurrencies.
Services provided by a platform, or an exchange operator, were duly recognised as taxable services and authorities have been charging them to tax, Johri said.
CBIC will take 2-3 months
However, the issue of supply of cryptocurrencies required more detailed examination, Johri added.
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