The government is working on the classification of cryptocurrency as goods or services under the GST law so that the tax can be levied on the entire value of transactions.

Currently, 18 per cent GST is levied only on service provided by crypto exchanges and is categorised as financial services.

GST officers are of the view that cryptos are similar to lottery, casinos, betting, gambling, horse racing, which have 28 per cent of GST on the entire value. Besides, GST at 3 per cent is levied on the entire transaction value in case of gold.

“There is a clarity needed in regard to levy of GST on cryptocurrencies and if it has to be levied on the entire value, We are seeing whether crypto currencies can be classified as goods or services and also removing any doubt on whether it can be called an actionable claim,” an official said.

The GST law does not clearly state about classification of cryptocurrency and in the absence of a law on regulating such currencies, the classification has to take into account whether the legal framework treats it as actionable claim.