This year Bitcoin has already broken every barrier and got everyone’s attention. And this time its India’s Central Economic Intelligence Bureau (CEIB) paying attention to Rs.7,200 crores (~ $1 billion) of yearly taxes which the country can collect from traders and investors.
The CEIB, an important part of India’s finance ministry has put a proposal in front of the Government to collect 18% GST (goods and service tax) on cryptocurrency transaction. As per the reports of CEIB, India’s crypto transaction are around Rs. 40,000 crores (~ $5.4 billion) annually.
For making cryptocurrency transactions to comply with GST policies, CEIB has suggested categorizing cryptocurrency under ‘intangible assets’ (an asset that is not physical in nature). The report suggested that 18% GST can be charged on the margins made in its trading.
Considering the percentage of taxes suggested by the CEIB it may change the environment of crypto trading in India. This is not the first time crypto traders and investors have faced something like this, 2 years back the Supreme Court of India has put a blanket ban on cryptocurrencies by disabling banks and payment gateways to support cryptocurrency companies and transactions, however in March, 2020 the blanket ban got uplifted.
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