India is considering a cryptocurrency “goods and services” tax of 18 percent, BloombergQuint reported Thursday, citing people familiar with the matter.
India’s Central Board of Indirect Taxes and Customs is considering the tax despite the digital currency’s unresolved legal status. Cryptocurrencies could be classified as intangible goods on a par with software, according to the report. The use of cryptocurrency in illegal activities would have to be dealt with under other laws.
India hasn’t officially determined digital currency’s legal status but is concerned about the risks involved. In April the Reserve Bank of India banned lenders from dealing with crypto traders after a bitcoin (BTC) spike and subsequent fall in value last year. This ban is being challenged in court. Read more here.