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.
The Recent Take Of The 2022-23 Budget:
On one hand, the 2022-23 Budget focused on the levy of the Income Tax on the Crypto Assets. As if now, the decision is that a Thirty percent IT plus Cess and Surcharges would be levied on such type of Transactions in a similar platform. Furthermore, this Platform is similar to the way it treats the Victories from the Horse Races and many more Speculative Transactions.
Few Other Parameters To Be Noted In The Budget Of 2022-23:
In addition, the Budget of 2022-23 has proposed a One percent TDS on the Income which is generated from the Virtual Currencies. Perversely, in case the Income is beyond Rupees 10000 a year, then only the Taxation could be levied and that also this Taxation would be in the Hands of the recipient. At the same time, the Threshold Limit for the TDS would be Rupees 50000 year for specified people. Beyond this, this category of people includes the Hindu Undivided Families who needs to get their accounts audited under the IT Act. Apart from this, the provisions catering to the One percent TDS would be coming in effect from the 1st of July, 2022. Perversely, the Profits would be taxed with effect from the 1st of April, 2022.
Concluding Lines:
On one hand, the Government is working on the Legislation in order to regulate the Cryptocurrencies. However, the draft has not been released on a Public platform. The question still remains to be answered yet whether the Taxation to be levied on Cryptocurrencies could be boxed in the Framework of the “Actionable Claim” or not
