In what could mar the mood of the cryptocurrency investors in India, the goods and services tax (GST) Council is expected to mull imposing a 28% tax on cryptos. The proposal is anticipated to be tabled in the upcoming GST Council meeting.

As per reports the 28% GST will be in addition to the 30% income tax on earnings from cryptocurrency asset transactions.  The GST Council has set up a committee that will soon consider the proposal to impose 28% GST on all the cryptocurrency-related services. Imposing this heavy tax is yet another shock for crypto enthusiasts in the country. Meanwhile, the 30% ‘cryptocurrency tax’ proposed in the Union Budget came into effect on April 1, 2022. 1% TDS (Tax Deducted at Source) will be applicable on cryptocurrency transactions from July 1, 2022.