According to media reports, the goods and services (GST) council is expected to impose a 28 per cent tax on the crypto assets or the virtual digital assets (VDAs).
The services such as crypto mining, with sales and purchases, are likely to attract the 28 per cent GST if the proposal is presented and approved in the next GST council meeting according to a media report on Economic Times. The meeting's date is not finalized yet.
The proposal is on par with GST on betting and gambling. Currently, online gaming (without betting) attracts 18 percent GST while betting and gambling is subject to 28 percent.
In the Union Budget for FY2022-23, Finance Minister Nirmala Sitharaman had imposed 30 percent income tax on earnings from virtual digital asset transactions without any deduction for losses. As per the guidelines, such income will be taxable even if taxpayers’ total income is below the threshold limit of Rs 2.50 lakh. This proposal came into effect on April 1, 2022.
The government is also working on guidelines making it mandatory for aggregators to redress consumer complaints in a stipulated timeframe