The market of cryptocurrency has widened itself. Many cryptocurrencies have come in already and many will be coming soon as well.
Mr. Tarun Bajaj the revenue secretary said that people generating income from cryptocurrency are already paying revenue gains tax underlies very clear in respect of GST that is goods and service tax that rate would be applicable in case of other services.
The government is not planning to get the income from cryptocurrency in the tax net with some changes, this could be part of the budget next year.
We understand that people already paying tax as income on cryptocurrency in the form of capital gains. Now seems it has grown we will be trying to make some changes in the law but that would be budget activity. We are already nearing the budget we have to look at that point of time as well, Mr.Bajaj added.
When asked about TCS that is the tax collected at the source can be brought collect this tax Mr. Bajaj said if we come up with the law then we will see what can be done but if you make money you have to pay taxes.
When asked about out the people in cryptocurrency transactions would be categorized as facilitator, trading platform, brokerage and if yes, how will they be charged with GST.
To that Mr. Bajaj replied, there will be already search services available in other things, so whatever GST rate is applicable on them will be applicable on this. The Law of GST is very clear.
Some people are helping people to earn money and then charging brokerage for the same then they have to pay the tax that is GST.
It is found that people advertise cryptocurrency as an easy way to gain some real income. Even celebrities are hired to promote this. Currently, there is no ban on trading in cryptocurrency but also no regulations for the same.
With this drawback, it cannot continue to stay in the economy show the prime minister of India Narendra Modi has had a meeting last week with the officials, and indicators strong that there will be some strong regulatory actions will be taken to deal with this issue.