In a statement to Business Standard (via A2Z Tax Corp LLP), CBIC Chairman Vivek Johri said that there may be a proposal to impose 18% tax on these companies. All these entities will pay GST at the same rate as cryptocurrency exchanges will pay 18 per cent tax on the commission earned by them, he added.
According to the report, Johri has said that the CBIC will complete its internal assessment within a month, then it will be presented to the GST Law Committee and later to the Council, where a final decision will be taken on it.
In his statement, Johri said, “If I am supplying or buying crypto assets or mining using crypto currency or using it as an exchange for payment of goods or services, then under GST How will it be handled? It needs some more deliberation and investigation. We hope to find a solution in a month’s time.”
When asked by Business Standard what rate could be applicable on such services and transactions, the CBIC chairman said, “It is a bit hypothetical. But if it is a service, if these transactions are treated as provision of an IT service, then the normal tax bracket is 18 per cent.”
The report says that the date for the next meeting of the GST Council has not been confirmed, but it may take place in March.
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