The Central Economic Intelligence Bureau (CEIB) has put forward a proposal to impose 18% GST on bitcoin transactions, estimated to be around Rs 40,000 crore annually.
The CEIB has conducted a study on levying GST on cryptocurrencies. It suggested to the finance ministry that bitcoin can be categorized under the āintangible assetsā class and GST could be imposed on all transactions.
Presently, there is an absence of a regulator for cryptocurrency and hence there is also fear of it being used for big-time money laundering and undermining of legitimate currencies.
The Supreme Court asked the government to come up with cryptocurrency regulation policies. The apex court in March, this year struck down the curb on cryptocurrency trade in India.
The Supreme Court quashed an earlier ban imposed by the Reserve Bank of India (RBI) on trading in virtual currencies such as bitcoin.
On December 11, the Enforcement Directorate arrested a cryptocurrency trader in Gujarat for his alleged involvement in money laundering on banned Chinese betting apps operating in the country.
