GST to be levied on Crypto transactions soon?

The government is working on classification of cryptocurrency as goods or services under the GST law, so that tax can be levied on the entire value of transactions.

Currently, 18 per cent Goods and Services Tax (GST) is levied only on service provided by crypto exchanges and is categorised as financial services.

GST officers are of the view that cryptos, by nature, are similar to lottery, casinos, betting, gambling, horse racing, which have 28 per cent of GST on the entire value.

Excerpt from the article below :point_down:

Soon GST may be levied on crypto transactions somewhere btwn 0.1 - 1% on the value of transaction as per the news seen in many articles.

looks like cryptos vl b cash cows for milking taxes for govt :laughing:

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There have been hundreds of “views” by regulators in the last 5 years. It has been called a legal, illegal, semi-legal, asset, digital asset, gambling, currency, securities, alternative asset, alternative currency, commodity, exchange tokens, software, payment technology, horse racing, bubble, revolution, and everything in between. All these “views” by “officers” just goes on to say that after all these years no one understands what they are trying to regulate.

It’s not completely their fault though, the crypto community itself conceived it as a currency, but then set up exchanges and start trading it like securities, and thinks about applying it to every single problem ever conceived, all while accumulating and holding it like its Bullion.

So this then again means, that neither side are clear on what it actually is, and how it should it should be presented to the other party. So long as this ambiguity exists, expect more random and quixotic regulations forced upon cryptos.

All these are probabilistic events, contingent upon the happening or non-happening of some future event. How is paying a certain amount of fiat currency to receive n amount of cryptocurrency in return probablistic ? This is one of the most basic contract that can exist. What is the contingency here ? That the price would increase or decrease ? By that logic buying property and stocks are also horse racing. That’s just a cringe and lazy statement.

Sadly this would be the case so long as cryptos are backed by fiat. We can never know true instrinsic value of say Bitcoin until we know its value is backed by x amounts of dollars, rupees, or euros. Cryptos should only be backed by other cryptos and should not be convertible to fiat if they want to avoid playing by the old rules. If they cannot find a way, then yes regulators have the right to slap random taxes on it. They do it for everything else, why should cryptos be any different.

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Check this tweet out folks

Lol, another category in the list of 28%? :grimacing:

What a load of bs. :rofl: :rofl:

Your views on this?

all these taxes can be bypassed , including the 30% tax. LOL.

Cryptocurrencies is neither Goods nor Service hence Govt can’t levy GST on Cryptocurrency.

To levy tax on Crypto govt has to treat crypto as lottery ticket and then it can proceed to levy GST on Crypto.

For me crypto looks very much like a lottery ticket and hence I think they’ll go ahead with the decision.

Interesting. They just want to make sure we don’t escape the GST regime by using crypto for our transactions. But this is really wrong. The zero transaction cost is the highlight of crypto currency exchanges and now they are forcing us to pay tax for spending our hard earned digital money.