Now cryptocurrencies can also be brought under the purview of GST. The government is working on classifying cryptocurrencies as goods or services under the GST law to tax the entire value of transactions.
At present, only services provided by crypto exchanges attract 18 per cent GST and are classified as financial services. GST officials say that investments in cryptocurrencies are tantamount to any lottery, casino, betting, gambling, horse racing, with 28 per cent GST applicable on the entire value. Further, in case of investment in gold, 3% GST is applicable on the entire transaction value.