What Is The Government’s New Take On Cryptocurrency:
Cryptocurrency under GST Law focuses on the recent News that the Government is planning to categorize the Cryptocurrency as Goods and Services. Moreover, this categorization would happen under the GST Law. At the same time, there is a specific reason behind this. Furthermore, the reason is that the Government could levy the Tax on the entire value of the Transactions.
What Is The Present Status Of The Cryptocurrencies When It Comes To Taxation?:
Crypto Exchanges provide a certain service, which comes under the category of Financial services and as if now, 18 Percent Goods and Services Tax is levied on the same.
The Opinion Of GST Officers On Cryptocurrencies:
It has been stated by the GST Officers that Cryptos are similar in nature to the Horse Racing, Casinos, Betting, Gambling and Casinos, which possess 28 percent of the GST. Furthermore, this GST is calculated on the entire value. Beyond this, when it comes to Gold, the GST is levied on the complete Transactional value. Furthermore, in this case, the GST is calculated at 3 Percent. Betacular Trade
The Clarification Airs Yet:
At the same time, there is yet a clarification which needs to be transparent. Firstly, the question is that whether Cryptocurrencies could be classified as Goods and Services. Secondly, the question arises whether at all, the Cryptocurrencies could be levied with GST, and if at all, should it be levied on the complete value. As if now, per the research, in case, GST is levied on the entire Transaction of Cryptocurrencies, the Rate could be in the range of 0.1 to 1 Percent. In fact, the discussion is yet down the Pipeline, whether it would be 0.1 percent or else 1 percent. In addition, the decision on the classification needs to be finalized and secondly, the rate would be discussed.
The Take Of The Goods And Services Tax:
Until now, the biggest drawback is that the Goods and Services Tax does not mention on the Cryptocurrency categorization. Furthermore, there is yet the absence of a Law which regulates the Virtual Digital Currencies. At the day end, it needs to be checked whether the Legal Framework would classify such a categorization as an actionable claim.