India Considers Taxing Bitcoin Transactions 18%

---

An important article in the Times of India yesterday in which it was explained that the Indian government of Prime Minister Modi is currently considering imposing a 18% goods and services tax (GST) on any Bitcoin transactions. Given the growing importance of the crypto industry in India, this could prove to be a massive shift.

Government of India is weighing a proposal to impose 18% goods and services tax (GST) on #bitcoin transactions.https://t.co/Vi36BZNh64

— Crypto India 🔑 (@CryptooIndia) December 29, 2020

India’s Central Economic Intelligence Bureau (CEIB), of the Indian Finance Ministry, has provided the government with the possibility of thus gaining an extra billion dollars to it’s budget.

Given that India’s crypto scene has exploded in recent months, current estimations are that it is worth some $5.5 billion already.

400% over summer

Already during the summer months, it was reported that during the lockdown period, the volume of daily crypto trading in India had soared by some 400% and now they are seeing those numbers confirmed as major platforms are ready to expand operations in the country. It is unclear whether this latest announcement in the Times of India will change planned expansions.

The Indian government is considering categorizing #bitcoin under the “intangible assets” class and 18% GST “could be imposed on all transactions.” #crypto #cryptocurrency #btc https://t.co/1fklFxIMuM

— Bitcoin News (@BTCTN) December 29, 2020

CoinDCX, the largest crypto platform in the country, admitted the stellar growth in a press release recently saying:

We saw triple growth in the overall volume traded and saw four times quarter-over-quarter growth in daily active users, in the April to June quarter. Overall, in Q2 and Q3, CoinDCX saw a 12% increase in signups and a 20% increase in volume. CoinDCX saw 21% Month on Month growth in trade volume and 25% growth in the number of users, in October.

With Bitcoin currently trading over $27,000 and touching the $28,500, Indians are keen to buy some and platforms are recording record signups in recent weeks.

magri1 / Depositphotos.com