India plans to increase the tax burden on the cryptocurrency sector, CNBC-TV18 reports citing its own source. According to it:
“The proposal is to charge 28% GST on services and all activities related to digital assets in the near future.”
The issue is currently being studied by the legal committee of the Goods and Services Tax Council. Once approved, the initiative will be submitted for review and approval.
GST is an indirect tax paid on all goods and services in a country. Under the current system, the rate for cryptocurrency transactions classified as financial services by exchanges is 18%.
In India, a fee of 28% applies to the online gambling sector. Sources have explained that the purpose of the proposal is to bring crypto-specific taxes in line with the rates applied to gambling, lotteries and horse racing.
The authorities have previously introduced a 30% tax on profits from cryptocurrency transactions and a controversial 1% fee within the TDS.
