The government panel will meet next week to discuss the Goods and Services Tax (GST) on cryptocurrency transactions, Bloomberg reported on June 22.
The government panel comprising Union and state ministers is looking at widening the tax net to more effectively track transactions in virtual digital assets. According to the report, the panel is going to meet for two days in Chandigarh from June 28.
While the panel may not finalize a rate in the upcoming meeting, it may discuss keeping it in the highest tax slab of 28 per cent.
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Earlier in 2022, Finance Minister Nirmala Sitharaman imposed 30 percent tax on income from transfer of virtual assets and 1 percent tax on all crypto transactions at source to assess the size of the crypto market in the country and track users. , Through this move, the government aimed to remove the uncertainty regarding the legal status of crypto transactions.
However, there is still no clarity on imposing sales tax on digital currencies due to ambiguity in its treatment as goods or services and lack of regulatory framework.
On May 30, Economic Affairs Secretary Ajay Seth said that the government is almost ready with its consultation paper on crypto.
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“Our consultation paper is quite ready. We have gone deep into it,” Seth told reporters on the sidelines of an event on May 30.
But Reserve Bank of India (RBI) Governor Shaktikanta Das reiterated his stance on June 9 and said that cryptocurrencies pose enormous financial stability risks to the economy.
“We have already conveyed our stand (on cryptocurrencies) to the government. They pose a huge risk to financial stability,” he had said. The top regulator was warning bank investors about trading in cryptocurrencies amid the ongoing crypto market crash.
With inputs from agencies.