What India's GST on cryptocurrency means for Bitcoin hodlers like us?

Source :Sify
Last Updated: Fri, Jul 2nd, 2021, 20:45:19hrs
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Dear Saar,

Thank you very much for sharing the news about Indian tax agency thinking about putting GST on cryptocurrency peoples like us.

Saar, I just informed you seven days before about how someone gifted me a Bitcoin for my birthday. Now I am thinking that gift should be land near our village. Because, that Elon Musk is tweeting everyday and price is going so down.

Anyways, that link you sent no Saar first, first I think it is Netflix or Amazon Prime. Because it is asking money. I rubbed my eyes and then came to know it is a news website. I dont pay for news saar.

Coming to GST Saar, I am very happy we completed four years. But for cryptocurrency, I dont know how they can tax us. No no, they can tax us; Yes yes, they will tax us. But don't know how they will find who to tax. Because no Saar, in blockchain people's names are anonymous. Only their hash codes are visible.

But, I think somebody at the Tax Agency is very intelligent and smart. They always have intelligent people no.

Sir, if you are asking me no about tax on cryptocurrency, it is very nice. You know Ramesh no Saar? That jealous one! He only was telling me that many cryptocurrency mining companies are working in China and South Korea. Since we are taxing Indians for Chinese smartphones, maybe we should tax Indians buying cryptocurrency also.

And Sir if our tax department asks us for big tax, we will become biggest tax payers in India no.

Maths: 18 percent of $33,438 (current Bitcoin Price) is equal to $6,018. If you convert dollar to INR at 75 no, the total amount is 4,51,413 rupees per BTC. Just one bitcoin transaction can give four and half lakhs to government. Tax on profit of just $100 will be a tax of Rs 1,350 rupees. Good no Saar?

If the tax amount is also calculated then the cost of BTC will also increase no?

Because cryptocurrency hodlers like us pay tax, the banks will be good to us; exchange quality will become good; RBI will be good to us. And the DEA Secretary will also be good to us. Some years back no sir, that DEA secretary called cryptocurrency as dabba trading.

Anyways, I was relieved two months ago because Sitharaman Madam gave us some confidence by telling us that all doors to cryptocurrency will not be closed. So good no Saar?

But Chinese peoples started banning exchanges and mining activity. That Elon Musku started tweeting. From a price of $60,000 the price of Bitcoin came down to $33,000. India should impose GST fast on us.

That is why sir, this report is very good if it is true. I have just three doubts saar. Will they also include Cess, Swach Bharat Abhiyaan and other duties Sir? Can we claim this in our annual income tax filing Saar?

Also Sir, will Jinping and Biden allow for 18 percent GST or some commission? Because I feel if they ask for cut no, all Bitcoin peoples will become Goindha Goindha.

Yours Faithfully,
Bluffington Iyer.

Disclaimer: Prof Bluffington Iyer is a day-dreamer, invests time in over-thinking and writing silly parodies and satire for Sify Finance. Do support Prof Bluffington's dream-time and thoughts by sharing them on Social Media.

Other Letters from Bluffington

The day when someone special gifted me a Bitcoin

Fekunigans by Bluffington: IPOs and stock markets are overhyped, try OSIs instead

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