GST On Cryptocurrencies
- The Central Economic Intelligence Bureau (CEIB), an arm of the union finance ministry has put forward a proposal to impose 18 per cent GST on bitcoin transactions.
- The CEIB told the Central Board of Indirect Taxes & Customs (CBIC) that government could potentially gain Rs 7,200 crore annually on bitcoin trading.
- It suggested finance ministry that bitcoin can be categorised under 'intangible assets' class and GST could be imposed on all transactions.
- Cryptocurrency can be treated as currents assets and GST charged on the margins made in its trading.
- Earlier Supreme Court asked the government to come up with cryptocurrency regulation policies.
- Currently, bitcoin, as a medium of payment, has neither been authorised nor been regulated by any central authority in India.
Source : business today