The Central Economic Intelligence Bureau (CEIB), an arm of the union finance ministry has put forward a proposal to impose 18% GST on bitcoin transactions. The CEIB told the Central Board of Indirect Taxes & Customs (CBIC) that government could potentially gain Rs 7,200 crore annually on bitcoin trading.
The CEIB has conducted a study on levying GST on cryptocurrencies. It was found that bitcoin can be categorised under 'intangible assets' class and GST could be imposed on all transactions, according to a Times of India report. It added that cryptocurrency can be treated as currents assets and GST charged on the margins made in its trading.
Previously, the Supreme Court asked the government to come up with cryptocurrency regulation policies instead the SC quashed an earlier ban imposed by the Reserve Bank of India (RBI) on trading in virtual currencies such as bitcoin.