India might slap 28% GST on Crypto Transactions

According to a news report by CNBC 18, the Indian GST Council might levy as high as 28% GST on cryptocurrencies and related services. This comes in addition to the existing 30% Crypto Tax and 1% TDS. Further, losses in one cryptocurrency cannot be offset against another.

28% is the Highest Type of GST Slab

GST is an indirect tax and replaced the earlier VAT and Sales regime in almost every product and service category. There are currently 4 types of GST slabs in India that are 5%, 12%, 18%, and 28%. Cryptocurrencies are often perceived as negative by regulators.

The current GST of 28% is could be finalized in the next GST council meet, the date of which is to be decided.

The government perceives crypto in the same category as lottery, gambling, casino, and betting on races. Moreover, the government wants crypto exchanges and VPN service providers to retain 5 years of data.

Earlier Taxations

With the new year budget in Feb 2022, the government introduced the 30% tax on Virtual Digital Assets. It further clarified that this tax will be liable for any profit. Any loss arising due to other crypto investments would not be adjustable against this tax liability.