Cryptocurrencies To Attract 28 Percent GST In India Soon

Govt of India continues to discourage cryptocurrency investors. Back in early 2022, the Govt levied 1 percent TDS on every transaction along with a 30 percent tax on the profits made on cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and more. Cryptocurrencies will soon attract GST in India, and here are the details.

Now, the Govt is all set to bring cryptocurrencies under the GST slab, where, each crypto transaction in India will have to pay 28 percent GST. This puts crypto-trading on par with activities like betting, racecourses, and lottery, which also attract 28 percent GST.

The same will be finalized during the next GST council meeting, and from then on one has to pay a whopping 28 percent GST on every crypto transaction. Given that cryptocurrencies like Bitcoin have already lost half of their value, this move will further discourage Indians from investing in a cryptocurrency.

According to Nirmal Sitharaman Minister of Finance and Corporate Affairs, Cryptocurrency does need a regulatory mechanism to prevent it from being used for money laundering and to fund terrorism. This specific move in India is expected to have some effect on the overall cryptocurrency market in India and across the world.

Cryptocurrencies Are Losing Their Value

In just around eight months, Bitcoin -- the most valuable cryptocurrency has lost more than half of its value. While the early investors are still in profit, those who have gotten into crypto in recent times have lost a lot of money as cryptocurrencies like Bitcoins, Etherium, and even others have lost their value.

Tax On Cryptocurrencies In India

Currently, you have to pay 1 percent TDS for every crypto transaction, similarly, one has to pay 30 percent tax on profits made on crypto investments, which also includes NTF. In the coming days, one also has to pay 28 percent GST, which is likely to discourage a lot of cryptocurrency investors in India.

While there is no clarity on when the GST council will amend this new rule, it is likely to happen in the next few weeks. If you have heavily invested in cryptocurrency, then make sure to have a closer look at various crypto-related announcements from the Govt of India.

Via