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18% GST on bitcoin transactions, Centre’s plan to generate Rs 7,200 crore annually: Report

The central government is exploring the option of imposing an 18 percent goods and services tax (GST) levy on bitcoin transactions, a move that could potentially generate Rs 7,200 crore annually.

The Central Economic Intelligence Bureau (CEIB) has sent a proposal on the matter to the Central Board of Indirect Taxes & Customs (CBIC), according to a report by The Times of India.

The CEIB has pegged the value of bitcoin transactions in the country at Rs 40,000 crore annually, the report added. The board had conducted a study on implementing GST on cryptocurrencies.

Moneycontrol could not independently verify the story.

Also read: Surging investor interest sends bitcoin to peak past $23,000

Bitcoin, the most-valuable cryptocurrency, has gained more than 200 percent in 2020 and touched a record high of over $23,000 on December 17.

Digital currencies are currently unregulated in India. The Supreme Court, in March, set aside a 2018 circular by the Reserve Bank of India (RBI), which barred banks and financial institutions from providing services related to cryptocurrencies.

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