The government is evaluating the application of the goods and services (GST) tax on various financial transactions, including the mining of these digital assets.
The matter is being considered within the Central Board of Indirect Taxes and Customs (CBIC) and the proposal will be referred to the GST Council, said CBIC chairman Vivek Jori.
The budget has raised a maximum interest rate of 30% on real digital currencies since April 1, 2022. GST tax on some of its payments may increase the tax incidence on cryptocurrencies.
The services provided by the stadium, or commercial operators, were duly recognized as taxable services and the authorities had been taxing them, Jori said.
CBIC will take 2-3 months However, the issue of the provision of cryptocurrencies requires a detailed examination, Jori said. "You crypto mine ... the first question is whether that involves giving or not. Second, I got the crypto and sold it to someone else or used it for trading.
"Is that a fundraiser, or is it the provision of goods and services, or just a claim that can be processed? These are some of the issues that involve the GST issue we are currently investigating," he added.
The matter is currently being investigated within the CBIC and could take up to 2-3 months, he added. On the issue of the tax contract for the electric car company, Tesla, Jori said there seemed to be no change in the structure, declining to comment on a specific company issue.
Asked if he would be taken to the GST Council at its next meeting scheduled for March, he said: “We are trying but the legal committee must go through and go to the council.
"When the government inspected the rates framework, it was discovered that some car manufacturers from different countries were importing CBUs (fully constructed units) with a 100% tax rate to sell here. We looked at the building, but (after testing) saw no need -rejig at the moment, ”said Jori.
Tesla demanded an import tax on 40% of fully manufactured electric vehicles compared to the current 60% applicable for those with less than $ 40,000 and 100% for those above that limit.
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