The Central Economic Intelligence Bureau (CEIB), a subsidiary of the Union finance ministry has proposed a recommendation to impose 18 percent GST on bitcoin transactions.
The CEIB has informed the Central Board of Indirect Taxes & Customs (CBIC) that centre is likely to collect additional Rs 7,200 crore annually on bitcoin trading.
The CEIB has also conducted a study on imposing GST on cryptocurrencies. The arm has suggested the finance ministry that bitcoin can be put under ‘intangible assets’ category and GST could be levied on all transactions, as reported by Times of India.
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In 2019, the Supreme Court of India has sorted centre’s regulation policies with cryptocurrency. In March, this year the apex court removed the curb on cryptocurrency trade in India. The SC revoked an earlier imposed ban by the Reserve Bank of India (RBI) on trading in virtual currencies such as bitcoin.
In 2018, the banking regulator RBI had virtually banned cryptocurrency trading and had directed that all entities regulated by it shall not be dealing in virtual currencies or offer services for facilitating any individual or entity in dealing with the virtual currencies.