According to the Times of India, the ministrys Central Economic Intelligence Bureau, or CEIB, recently submitted a draft document that proposes imposing an 18% items and services tax on Bitcoin trading.CEIB figures put the estimated Bitcoin transaction volume in India at over $5.4 billion. Therefore, the proposed 18% tax could see the government earning about $970 million from crypto taxation.As part of the proposed strategy, the CEIB is pushing for virtual currencies to be categorized as “intangible possessions” to fall under the purview of GST with taxes levied on the earnings made from trading.Reacting to the news, Tanvi Ratna, CEO of Indian crypto policy advisory firm Policy 4.0, tweeted:” Sadly, this does not always indicate that crypto will be legal. At the time, the federal government was apparently moving towards reclassifying all forms of tax evasion as criminal offenses.Apart from the Supreme Court reversing the Reserve Bank of Indias ban versus banks servicing crypto exchanges back in March, not much has actually taken place by method of cryptocurrency guidelines in the country.The lack of regulative clarity is reportedly avoiding greater investor participation in the industry.
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