The Central Economic Intelligence Bureau (CEIB) has proposed a new tax for Bitcoin. Under the new law, Bitcoin will be counted as an intangible asset.
The law states that a Goods and Services Tax can be applied in all transactions related to Bitcoin. The central government is apparently evaluating the potential to impose an 18% GST tax on Bitcoin transactions, which will generate Rs 7,200 per year.
This proposal is not new as it was in May 2018, with the government already talking about a potential tax on cryptocurrency transactions.
Blockchain lawyer Varun Sethi said on Tuesday:
“ALL TRADE SHOULD NOT HAVE 18% GST ATTRACTION AS IDEAL, 18% SHOULD BE IDEALLY FOR SERVICE BASED INCOME. DOES THIS MEAN BITCOIN CAN BE TAKEN AS A EXCHANGE FOR SERVICES? IDEALLY FOR DAILY TRADERS SHOULD BE CONSIDERED AS COMMODITY TRADING AND CAPITAL GAINS WITHDRAWAL.