According to the report of Media, it’s indicated the request to buy and sell bitcoin in India can fall under tax (GST).
The committee formed to examine bitcoin have been continuously working to develop framework under the Indian law. There is no news confirmed regarding the legal or illegal of bitcoin from Indian Government yet.
The discussion on whether the bitcoin should be banned or regulated has been on for past few months. As there are multiple points both in favor and against the digital currency on which the committee is working. The proposal has been seen from both the aspect where the bitcoin is used for the illegal activities such as ransom attacks of WannaCry and Petya for $300 bitcoin. Whereas the virtual currency can also be used for many legal activities such as buying goods and service depending on the retailer’s payment system.
As per the report from the publication The Hindu, one of the officials from the committee cleared that the government has been discussing the topic of banning Bitcoin in India, but in the last few meetings, they have also received the proposal in support of bitcoin.
The official told the publication:
“Banning will give a clear message that all related activities are illegal and will disincentivize those interested in taking speculative risks, but it was pointed out it will impede tax collection on gains made in such activities and that regulating the currency instead would signal a boost to blockchain technology, encourage the development of a supervision ecosystem (that tracks legal activities and may also assist in tracking illegal activities) and promote a formal tax base.”
If Bitcoin gets legal in India the trading of cryptocurrencies will be going with the Securities and Exchange Board of India (SEBI), the regulators of country’s securities market.