India’s Central Board of Indirect Taxes and Customs (CBIC) is considering imposing ods and services tax (GST) on cryptocurrency transactions.
The government may levy an 18 percent GST on cryptocurrency trading. The proposal will be tabled before the GST Council after it’s finalised, according to a report.
Under such a scheme, cryptocurrencies would be defined as intangible goods, giving them a legal status similar to that of software. The government can consider levying GST on crypto-trading retrospectively from July 1, 2017.
India hasn’t officially banned or legalised virtual currencies, but the government has, on multiple occasions, pointed to the risks involved. More so, after bitcoin surged 19 times to nearly $19,000 last year before losing most of its gains.
The Reserve Bank of India in April barred lenders from dealing with entities trading in cryptocurrencies, giving them three months to unwind business. Crypto exchanges, however, moved the court against the directive. India’s Supreme Court will hear an appeal against that ban on July 20.