After 30% crypto tax, Centre mulling GST on mining of digital tokens
The Centre is exploring ways of levying GST on the mining of cryptocurrencies, reports suggest. Cryptocurrencies can be either mined (created/generated) or directly bought from crypto exchange platforms like Coinbase, Binance, Coinswitch, Bitfinex, WazirX, etc.The issue is being examined by the Central Board of Indirect Taxes and Customs (CBIC) and a proposal will be sent to the GST Council, CBIC Chairman Vivek Johri told The Economic Times.Also read: Five takeaways from the Budget 2022: From a crypto business and investor lensWhen can one expect a decision?"There are several aspects of the operation which intersect with GST as a tax," he said in an interview to ET.The issue of the supply of cryptocurrencies requires a more detailed examination.
As for the expected time that the CBIC may require to reach a decision, it could take 2-3 months, according to Johri.Also read: Cryptocurrency big threat to India’s macroeconomic stability: RBI Guv Shaktikanta Das“Mining is key to VDA transaction. The Government is now thinking of how to tax such a thing.
First, a call is to be taken as whether to treat mining as goods or service and then, secondly, place it accordingly in a category from the GST point of view,” a senior government official told The Hindu Business Line.The Union Budget 2022-23 proposed a steep 30 percent tax on the trading of all virtual digital currencies. The proposed GST on transactions of virtual digital assets or VDAs will result in an overall increase in the incidence of tax on cryptocurrencies.Also read: Budget 2022 | If you're making money on crypto sales, I will tax you: Revenue secretary Tarun BajajWhat the crypto industry saysAccording to Kanwal Prakash Singh, Head of Quant with CoinDCX, any platform
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