Bitcoin trade may attract I-T, GST; taxes to be paid in this fiscal year

The recent trigger being Tesla, Inc.'s announcement of having bought $1.5 billion in bitcoin.

Ahead of the cryptocurrency Bill, the government is likely to levy both income-tax (I-T) and goods and services tax (GST) on gains and trading of bitcoins or cryptocurrencies, said a senior finance ministry official privy to the development. A circular will be released soon, he added.

“Bitcoins will be categorised as financial services attracting 18 per cent GST on fee commission collected under this segment. Plus, tax (personal I-T) to be paid on the earnings from this,” clarified the official.

Sources say both taxes will be imposed for the current fiscal year as curb on crypto trade in India had been lifted