Officers committee suggests deferment of decision on levying GST on cryptoNew Delhi: The officers’ committee on GST has suggested the GST Council defer a decision on the cryptocurrency and other virtual digital assets tax.In its report to the GST Council, the Fitment Committee has suggested that a law on cryptocurrency regulation is awaited. Identifying all relevant supplies associated with the crypto-ecosystem would be essential, besides classifying whether they are goods or services.The committee of officers from the Centre and states, referred to as the Fitment Committee, felt that a deeper study was needed on the issues involved in the crypto ecosystem.It was decided that Haryana and Karnataka shall study all aspects and submit a paper before the Fitment Committee in due course.The committee felt that it was required to identify all relevant supplies associated with crypto-ecosystem under the ambit of GST; their nature, whether those activities are goods or services and their applicable rate.Hence, it suggested that the Council defers a decision on the taxation of cryptocurrency in its next meeting on June 28-29.The 2022-23 Budget has clarified the levy of income tax on crypto assets; however, on the Goods and Services Tax (GST) front, the classification of cryptocurrency as to whether it is goods or services is still not clear.From April 1, a 30 per cent income tax plus cess and surcharges are levied on such transactions in the same manner as it treats winnings from horse races or other speculative transactions.A 1 per cent TDS on payments over Rs 10,000 towards virtual currencies has also been introduced, which will kick in from July 1.The threshold limit for TDS would be Rs 50,000 a year for specified persons, which includes individuals/HUFs who are required to get their accounts audited under the I-T Act.
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