It has been reported that the GST Council is considering levying a 28 per cent tax on cryptocurrencies and their related services.

According to reports, the government is planning to keep cryptocurrencies in parallel with some things, including lotteries, casinos, races, and race courses.

However, full approvals have not been received and are expected to be approved at the forthcoming GST Council meeting.



Regulatory action

The legality of cryptocurrency in India is still unknown.Initially, there was an expectation that cryptocurrencies might be banned, but nothing was done. Instead, the government is seriously considering regulating cryptocurrencies.

What was the budget announcement?

In the last Budget Announcement for the financial year 2022–2023, Union Finance Minister Nirmala Sitharaman made some announcements to regulate cryptocurrency. The announcement said the transaction of virtual assets would be taxed at 30%. He also said that a 1% tax would be levied on the transfer of virtual assets.

Committee to resolve complaints

It is in this context that the GST Council is reportedly considering levying a 28% tax on cryptocurrencies and their related services. Further, it is likely that it will be mandatory to set up a committee with a coordinator to resolve consumer complaints within the stipulated time frame.



may increase tax collection.

This is likely to be discussed at the next meeting of the GST Council. However, the date for the next GST Council meeting has not been decided yet.

Consider this as well.

Among these efforts to tax cryptocurrencies comes the long-standing demand for GST on petrol and diesel. Experts say the government should consider this as well. Experts say this will help bring prices under control amid rising international crude oil prices.

Will the government take this into consideration? Will fuel prices fall? Let's wait and see.