Yes, you heard it right Bitcoin trade might not be tax-free anymore. The Indian government has been considering the option to impose an 18% tax on digital currency. Till now, the trading of cryptocurrency wasn’t regulated, but it might not stay that way for too long. Estimates say that about Rs 40,000 crores of Bitcoin is traded in India annually. And in that case, the government can get about Rs 7200 crores of tax money from those transactions.
Why this sudden move?
First of all, the hype that the cryptocurrency is right now means that the annual transactions will only increase from here on. This is the reason why the Central Economic Intelligence Bureau has proposed the government to start imposing GST on the same. This move by the government will be beneficial for the country but, at the same time, won’t be appreciated by crypto traders. The Central Economic Intelligence Bureau has asked the government to put cryptocurrencies under ‘intangible assets.’ If the government terms Cryptos as assets, the 18% GST will become a reality soon.
Another big reason behind this move is that Cryptos are unregulated in the country. And that means that Bitcoins can be used for laundering money and also illegal stuff. If the government imposes a tax on the trading and starts regulating the currency, then the illegal activities that happen or might happen due to the same will reduce drastically. It will also reduce the fast growth of the currency and might even reduce trading.
Bitcoin prices are skyrocketing, and seeing that GST might be imposed soon, it is a good time to invest. Reports suggest that in 2021 Bitcoin prices might cross $100,000 and $400,000 in the coming years. What are your thoughts on the same? And do you think it’s okay on the government’s part to charge 18% GST on the Bitcoin trade? Do let us know in the comments below. Also, if you found our content useful and detailed and useful do like and share it with your friends.