Tax on Cryptocurrency! It's the latest buzz in India
Making money out of thin air...sounds like MAGIC! What can be cooler than that? But some people are having problem with that. According to a latest buzz, Indian government is planing to apply Goods and Services Tax (GST) on Cryptocurrencies. (Oh poor!)
Virtual currency is an emerging trend in Indian financial setup & now seems like this's making government nervous. Few days back our government decided to clampdown all the virtual currencies in the country. But the plan has not really worked out and, in fact, it's being challenged in court. After the orders investors and sellers adapted alternative ways like crypto-to-crypto trading.
Now, under a new proposal to apply GST on this trade, sale and purchage of cryptocurrencies would be considered as supply of goods and transfer, storage and accounting facilities would be treated like services. If it is proved, everything about Cryptocurrency will be taxed. That means-
- GST of 18% would be collected on transaction fees or rewards.
- If Trade's value is over 20 Lac. individual have to register under GST.
- Even wallet service provider also have to register.
India is a developing country and our Prime Minister is the FLAG BEARER of 'Digital India', 'Make in India', etc...etc. but it already sounds like a lullaby. Why so fear government? It's a new age currency. Who would have thought about paper currency when people were trading only in coins? Just enjoy this magical era.
So folks, this is the story of my country and I'm looking forward to read 'Cryptocurrency versus Government story' from your side.