UK, USA, China and other countries are coming forward with regulations and bills to monitor crypto transactions. However, India is still warming up to enter the group.
Cryptocurrency trading and exchanges are on the rise in India. It has pushed the government to think about its future prospects. The government is said to be formulating a bill to impose 18% GST on foreign crypto exchanges. Imposing a cryptocurrency tax would generate India total revenue of $1 billion per annum.
The Central Economic Intelligence Bureau (CEIB) has put forward a proposal to Central Board to Indirect Taxes & Customs (CBIC). They are looking forward to considering cryptocurrency like bitcoin as an intangible asset. It would mean imposing 18% GST on Bitcoin transactions. An 18% GST slab is designed for capital goods and industrial intermediaries.
The government is also in the process to formulate a tax structure for cryptocurrency. Financial experts believe that the government’s tax structure is a good sign for the future of cryptocurrency in India. It is paving the way for a better understanding of this digital asset and its future possibilities.
India is witnessing a significant increase in crypto trading and exchanges. Earlier Reserve bank of India had put a banking ban on cryptocurrency. But Supreme court slashed the RBI’s ban. Currently, Bitcoin and other cryptocurrencies are neither legal tenders nor illegal or banned in India.
