A proposal was recently introduced by the Indian Central Economic Intelligence Bureau (CEIB), presenting for action the possibility of imposing an 18% tax on all Bitcoin trading within the country.
The report, as published by the Times of India, predicts that the country sees an estimated 40,000 crore INR ($5.5 billion, where 1 crore equals 10 million units) worth of Bitcoin transactions in the country. Those 18 percent, called the good and services tax (GST), will bring about approximately 7,200 crore INR ($1 billion) in revenue tax fo the Indian government.
There have been concerns over some time now due to the lack of cryptocurrency regulations in India. The government has raised awareness of illegal bitcoin usage connected to money laundering and illicit betting. The report issued by CEIB, an important section of the Indian Finance Ministry, urges the authorities to recognize Bitcoin as a crucial asset in imposing a GST levy on all local BTC transactions.
This year brought about a flourishing cryptocurrency market in India. CoinDCX, India’s largest exchange, confirmed a significant surge in trade volume and active users.
Until recently India faced severe regulatory backlash concerning the crypto market. The Reserve Bank of India introduced a ban on Bitcoin and other crypto-based bank transactions. However, the Supreme Court of India lifted the ban earlier in 2020.