Officers committee suggests deferment of decision on levying GST on crypto




The officers committee on has suggested the Council to defer a decision on taxability of cryptocurrency and other virtual digital assets.


The Fitment Committee in its report to the Council has suggested that a law on regulation of cryptocurrency is awaited and it would be essential to identify all relevant supplies associated with the crypto-ecosystem, besides classification on whether they are goods or services.


The committee of officers comprising both from Centre and states, referred to as Fitment Committee, felt that a deeper study was needed on the issues involved in crypto ecosystem.


It was decided that Haryana and Karnataka shall study all aspects and submit a paper before the Fitment Committee in due course.


The committee felt that it was required to identify all relevant supplies associated with crypto-ecosystem which are under the ambit of GST; their nature whether those activities are goods or services and their applicable rate.


Hence, it suggested that the Council, in its next meeting on June 28-29, defers a decision of taxation of cryptocurrency.


The 2022-23 Budget has brought in clarity with regard to levy of income tax on crypto assets, however, on the Goods and Services Tax (GST) front, classification of cryptocurrency as to whether it is goods or services is still not clear.


From April 1, a 30 per cent income tax plus cess and surcharges, is levied on such transactions in the same manner as it treats winnings from horse races or other speculative transactions.


A 1 per cent TDS on payments over Rs 10,000 towards virtual currencies has also been introduced which will kick in from July 1. The threshold limit for TDS would be Rs 50,000 a year for specified persons, which include individuals/HUFs who are required to get their accounts audited under the I-T Act.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Leave a Comment