Amitabh Bachchan, the Bollywood actor, paid the government Rs 1.09 crore in GST for the sale of non-fungible tokens (NFTs) worth Rs 7.15 crore in an auction in November last year. According to Business Standard, Bachchan received a warning from the Directorate General of Goods and Services Tax Intelligence (DGGI) regarding payment of dues.
Despite Big B’s deposit, the DGGI is expected to continue its probe into tax avoidance, according to sources.
BeyondLife.club, a joint venture between Singapore’s Rhiti Entertainment Pte Ltd and GuardianLink.io, an NFT ecosystem technological framework, announced in August 2021 that Bachchan’s NFT collection would be available on its platform. Bachchan had signed an agreement with Rhiti Entertainment to convert his footage into digital assets, making him one of the first performers to support NFTs.
An NFT is a type of digital asset that represents real-world artifacts, including art, photography, music, films, and other media. This data unit is kept on a blockchain, a digital ledger that makes it unique and non-transferable.
Bigger B’s NFT poems
Recitals of Madhushala, a famous collection of poems written by Bachchan’s father and recorded in his own voice, were the most successful auction of Bachchan’s NFTs. Aside from that, there were posters and photos in the NFTs.
The NFT sale raised Rs 7.15 crore, which will be subject to 18 percent IGST. Big B had to pay Rs 1.09 crore in taxes as a result of the sale, which he has deposited. The superstar was unavailable for comment on the issue of tax payments.
Tax investigations on NFTs
Tax officials have begun investigations into investors dealing in cryptocurrencies and NFTs after Finance Minister Nirmala Sitharaman proposed revisions to the Income Tax Act that would include NFTs as virtual digital assets. Several Bollywood stars and celebrities, including Salman Khan and Manish Malhotra, as well as athletes such as cricketers Zaheer Khan and Rishabh Pant, have made large sums of money by auctioning items on NFT platforms.