The world’s second-largest country by population, India might possibly give a ray of hope to cryptocurrency investors following months of disseminating a negative plan against cryptocurrencies.
According to reports, India may possibly introduce an 18 percent Goods and Services Tax (GST) on cryptocurrency trading, regardless of their legal uncertainty in the country. At present, the suggestion is being reviewed by the Central Board of Indirect Taxes and Customs and shall be presented to the GST council after it is confirmed.
As reported, the digital asset could be termed under “intangible goods,” compared with other software systems, with the authority saying that different laws would be implemented to handle the use of cryptocurrency for fraudulent activities.
The Indian government in December 2017 made a ban on the cryptocurrency market, which resulted to both exchanges and traders watched for operating with and making money on digital assets.
In April 2018, the Reserve Bank of India almost destroyed the cryptocurrency sector in the country, as it ordered all banks to withdraw their relationships with all cryptocurrency exchanges.
People familiar with the issue noted that the Income Tax department has recognized the benefits of taxing cryptocurrencies.
If the growing cryptocurrency market is not adequately taxed, it might result in great problems, which will make it difficult to recover in the future. Hence the suggestion requires immediate action.