Govt mulling levy of I-T GST on cryptos

Subject – Economy

Context – Govt mulling levy of I-T, GST on cryptos; Bill in Winter Session

Concept –

Cryptos are likely to attract both income tax and GST.
If there is gain or income from crypto, it should be taxed per capital gains rules. Similarly, if there is service involved in the transaction, then GST needs to be levied.
This means the intent to tax is expected to be mentioned in the legislation, and then provisions will be added in the Finance Bill to facilitate imposition of direct tax.
For tax on transaction service, the Goods and Services Tax Council will take a final call.
On whether cryptos are to be treated as a currency or an investment asset, there is no clarity. It is highly unlikely to get the status of a currency.
While currency and banking products are regulated by the RBI, investment assets such as equity and commodity are overseen by the Securities and Exchange Board of India.