Sales or purchase of crypto are within ambit of GST: CBIC chairman

As the debate over the legitimacy of cryptocurrencies continues, CNBC-TV18’s Timsy Jaipuria caught up with Vivek Johri, the chairman of the Central Board of Indirect Taxes and Customs (CBIC) and asked him about their stance on taxing the crypto ecosystem.

“There is more than one aspect of cryptocurrency that intersects with the goods and services tax (GST). When it comes to services being provided by an exchange that deals with sale or purchase of crypto – those services are within the ambit of GST,” said Johri.

“The other aspects of crypto which requires some examination are how to deal with mining of crypto, sale or purchase of crypto per se whether it’s a supply of goods or services and the third aspect would be where a crypto is used to make payment by way of a barter for goods and services that are otherwise supplied,” he said.

Johri further said, “These are the other aspects that I can think of which require some detailed examination. CBIC is in the process of examining these aspects and thereafter there is a procedure to be followed of taking it to the law committee and to the GST council and we will have some finality on that in due course,” he said.

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