New Delhi: Bitcoin transactions in India may soon come under the preview of Good and Service Tax (GST). Government authority body CEIB (Central Economic Intelligence Bureau) has put forward a proposal to the Central Board of Indirect Taxes & Customs (CBIC) suggesting that the government should impose 18% GST on Bitcoin transactions.
The CEIB acts as a think tank of the ministry and has conducted a study on levying of GST on cryptocurrencies. According to the finance ministry sources, CEIB has suggested that the cryptocurrency should be categorized under intangible assets class and a GST should be imposed on all transactions. By doing this, the government could potentially receive Rs.7,200 crore revenue annually.
This is a good move towards legitimizing cryptocurrencies and its trading in India. Currently, PCEX Member is the only cryptocurrency exchange in India that charges 18% GST on every trade executed on the platform.
Bitcoin or other cryptocurrencies as a medium of payment have neither been authorized nor been regulated by any central authority in India. Moreover, no set rules, regulations, or guidelines have been laid down for dissolving disputes that can arise while trading in bitcoin. Hence, people in India are currently doing cryptocurrency trading at their own risks.
