Reports suggest that the government of India is planning to levy an 18 percent Goods and Services Tax (GST) on trading of digital coins.
Although there is no clarity about its legal status in the country, the Central Board of Indirect Taxes and Customs would be proposing the idea before GST Council after it gets finalized.
Neither illegal nor legal in India, Bitcoin affords anonymity in the grey area.
The government might consider levying GST on the crypto-trading from July 2018, the same day the new indirect tax regime was implemented.
Studies suggest people deal with virtual currencies worth Rs. 200 crore, and if it gets taxed, it would fetch the government about Rs. 360 crore in GST.
The government and the RBI have already warned the people about the threats of Bitcoin trading since there is no underlying asset and that they were used in financial illegal activities.
Taxation of services and exchanges have again thrown a question on the legality of the digital currencies in India and has further complicated the equations of the digital currencies in our country.