Consensus has eluded the officials because of the “complexities” involved in indirect taxation of cryptocurrencies.
The proposed move to levy goods and services tax (GST) on cryptocurrencies is set to be delayed as consensus on the modalities has eluded officials from the centre and state governments. As a result, the 50th meeting of the Goods and Services Tax Council, which is expected later this year, is unlikely to finalise the move.
Consensus has eluded the officials because of the “complexities” involved in indirect taxation of cryptocurrencies. Officials say they will need “a few more months” to be able to draw clarity on indirect taxation of virtual digital assets. “I don’t think this subject will be taken up for discussion anytime soon,” an official said.
Last year the GST Council had tasked the finance ministries of Haryana and Karnakata to study and identify all relevant supplies associated with the crypto-ecosystem that would fall under the ambit of GST, their nature, whether those activities are goods or services, and their applicable rate based on appropriate classification.
However, the officials of the two states say the need more time to analyse the subject, due to the inherent complications involved.
