Legendary actor Amitabh Bachchan paid goods and service tax (GST) worth ₹1.09 crore on the sale of non-fungible tokens (NFTs) of ₹7.15 crore following a notice by the Directorate General of Goods and Services Tax Intelligence (DGGI), a report by Business Standard stated.
As per the report, Bachchan had entered into an agreement with Rhiti Entertainment Pte. Ltd, Singapore, to convert his content into NFTs through an auction. The content converted included recital of Madhushala (a collection of poems written by his father), posters and images, sourced told the daily.
As per the GST slabs, the sale of NFT would attract 18 percent tax liability.
The report further added that even though he has deposited the amount, investigations by tax authorities continue.
Now, let's look at what is NFT?
A non-fungible token is a unit of data stored on a blockchain representing such digital assets as photos, videos, audio, and other types of digital files. The blockchain that stores the asset certifies it to be unique, giving the owner a certificate of ownership. They can, however, be further bought and sold – with each successive transaction duly recorded in the blockchain.
The various digital assets that can be saved on blockchain include digital art, games, music, film, memes and sports, and other assets.
Amitabh Bachchan was one of the first actors to endorse NFTs.
It is vital to note that NFT is merely proof of ownership and not a copyright. As a matter of fact, the creator of a digital asset is free to make more NFTs of the same work while possessing copyright of the asset. The ownership of NFT can be cross-checked on the blockchain ledger.
Though both bitcoins and NFTs work on the same technology of blockchain, there is a key difference between the two. Bitcoin is interchangeable while NFT is not, and hence it is called non-fungible.
NFTs that made waves
In 2021, interest in NFTs surged all of a sudden. On March 11, a digital artwork ‘Everydays: The First 5000 Days’, made by Beeple, became the first NFT to be listed at Christie’s auction house when it was bought for a whopping $69.3 million. A few days later, Jack Dorsey, Twitter’s founder, sold an NFT with his first tweet for $2.9 million.