Can this new GST proposal "Save Bitcoin In India" ?

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.

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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

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What do you think guys? Are we reaching somewhere? I would love to hear from you in the comments.

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