Shubham Saroj
If you were looking to buy Bitcoin, then you need to hurry up and buy it ASAP as in India, the central government is thinking to impose 18% GST on all Bitcoin transactions.
The Central Economic Intelligence Bureau (CEIB), an arm of the union finance ministry has put forward a proposal to impose 18% GST on bitcoin transactions. The CEIB told the Central Board of Indirect Taxes & Customs (CBIC) that government could potentially gain Rs 7,200 crores annually on bitcoin trading.
The CEIB has conducted a study on levying GST on cryptocurrencies. It suggested finance ministry that bitcoin can be categorized under “Intangible Assets” class and GST could be imposed on all transactions.
It added that crypto currency can be treated as currents assets and GST charged on the margins made in its trading.
Last year, the Supreme Court asked the government to come up with cryptocurrency regulation policies. The apex court in March, this year allowed cryptocurrency trade in India. The SC quashed an earlier ban imposed by the Reserve Bank of India (RBI) on trading in virtual currencies such as bitcoin.
The RBI had virtually banned cryptocurrency trading in 2018 and had directed that all entities regulated by it shall not deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling those.
Currently, bitcoin, as a medium of payment, has neither been authorized nor been regulated by any central authority in India. Further, no set rules, regulations, or guidelines have been laid down for resolving disputes that could arise while dealing with bitcoin.
Hence, bitcoin transactions come with their own set of Risks. Do your proper research and follow some timeless pieces of investing advice before you invest your hard earned money into bitcoin or any other cryptocurrency.
If you really wanted to invest in bitcoin, I think now’s the best time as you won’t have to pay 18% extra as a form of GST. Another reason why you do want to hurry is because bitcoin is attracting a lot of heat (obviously).
In the USA, bitcoin is facing regulatory scrutiny after record-breaking rally. After bitcoin crossed the $25,000 mark, it became an inflation hedge as compared to other financial assets. Companies like MicroStrategy Inc. and Square Inc. moved cash reserves into crypto in search of better returns than what they usually get in the market.
But with Bitcoin capturing greater attention, it could also garner further scrutiny from regulators. As of now, nobody knows how the US government will respond to bitcoin and other cryptocurrencies. The ongoing Trump administration can deal differently with it while the upcoming Biden administration will deal differently with it.
Hence, it doesn’t matter where you belong. You might be Indian or American. If you were planning on to buy bitcoin, act fast and invest in it as bitcoin may touch $1 million per bitcoin by 2030 (according to some estimates).
