Tax department preparing to apply GST on bitcoin
Preparations are being made to levy a tax for monitoring the increasingly popular virtual currency bitcoin. The Central Economic Intelligence Bureau and therefore the Directorate of Revenue Intelligence have sent a proposal to impose GST on digital currency. The speed of bitcoin is often gauged from the very fact that currently, the worth of a bitcoin has reached Rs 24 lakh. the worth was 14 lakh rupees a month ago. That is, a surge of 10 lakh rupees in 30 days has given sleep to the agencies.
Now the way of monitoring through tax
The increasing investment in bitcoin has alarmed the Federal Reserve Bank. There’s no controller of this currency nor any government of the planet has control over its trading. After the Supreme Court lifted the ban on bitcoin, the way of monitoring through tax has now been found. The Central tax Board (CBIC) may levy 18 or 28 percent GST on bitcoin. On its trading, GST is often imposed on all transactions, not directly. After this, profits from selling bitcoin are going to be taxed. If this rule will be implemented then the Indian tax government has gained a lot of benefits to collect GST.
A senior Central GST official said that intelligence economic agencies have prepared an in-depth report during this regard, stating that bitcoin alone could generate a GST of Rs 10,000 crore. He said that since there’s no sort of bitcoin, it might be classified as invisible or nectar property. It’ll be seen as an investment option sort of a share, property, or land. Despite this, cryptocurrencies are going to be categorized as cash, which may even be used. This may be done so that they are often monitored strictly under currency laws. At the present, its trading may be a big challenge, and thanks to this, there’s a danger of impacting currencies like the rupee, dollar, or pound.