Hello Steemians from India
Given the uncertainties pertaining to bitcoins & other cryptocurrencies and delay in Supreme court's judgement on mainstreaming these cryptocurrencies, one thing is crystal clear – It will take a lot of time for these assets to be widely accepted and circulated as a currency in India.
Despite all the limitations and uncertainties, India is still ranked among the top five countries in the world, which holds a lion’s share of bitcoin value.
Whether or not Supreme court passes it’s judgement this month, The Central Board of Indirect Taxes and Customs has started evaluating a proposal that will be presented before the GST Council of India shortly.
Important points of this proposal are as under
GST proposal for Miners
“Mining” of Bitcoin or any other cryptocurrencies in India to be treated as a supply of service as it produces cryptocurrencies as a reward and involves transaction fees.
Transaction fees or rewards should attract taxes.
Miners should have to register themselves under GST ( Goods & Service Taxes ) if the value of the mined crypto asset exceeds Rs. 20,00,000/- per annum.
GST proposal for Traders
Trading, transfer, storage, supply etc. of cryptocurrencies should be considered under
supply of Goods & Service category.
A cryptocurrency transaction between an Indian buyer (residing in India) and an Indian seller (residing in India) will be considered as a supply of “SOFTWARE”.
A cryptocurrency transaction between an Indian buyer or seller and a foreign national should be considered as an import & export of goods and IGST will be levied on this cross-border transaction.
The price of the cryptocurrency should be determined by the transaction value of Indian rupee or any freely convertible foreign currency.
Place of Supply: Location of the GST registered person will be considered the place of supply. If the is made to a non registered person, then the location of the transferor will be considered as the place of Supply.
Indian Wallet Service Providers will have to register them under GST
What do you think guys? Are we reaching somewhere? I would love to hear from you in the comments.
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