Investing in cryptocurrencies, NFT? Soon, you may have to pay 18% GST

The government is again examining a proposal to tax the blockchain ecosystem, which includes cryptocurrencies and NFTs. In fact, the tax department wants the framework for taxing the use of blockchain for commercial purposes to be implemented even before legislation on cryptocurrencies is brought in.

As it finalises legislation that is to be introduced in the upcoming winter session of Parliament, the government is reportedly considering a middle path on cryptocurrencies. A government official, who did not wish to be named, told Business Standard that even when they are not regulated, the use of virtual currencies and NFTs is prevalent, and this is leading to a loss of revenue for the government.