It seems that the government of India isn’t forbidding cryptocurrencies, rather mulling over taxing them.

The government is thinking about a proposition to lay an 18-percent Goods and Services Tax (GST) on the trading of the cryptocurrencies, Bloomberg reports.

The proposition is right now being assessed by the Central Board of Indirect Taxes and Customs (the national office in charge of GST) and will be introduced to the GST committee when the draft has been finalized.

The government may imply the GST on cryptocurrency reflectively from July 1, 2017 — when GST was actualized.

The levying of GST requires characterizing cryptocurrencies as goods or commodities instead of monetary standards or securities, and the cryptocurrency miners, exchanges and wallets will be classified as services facilitating the supply of goods. This enables the government to tax them specifically, without bringing in any adjustments in the laws.

While the government has never taken a characterized position on virtual monetary forms, RBI — the nation’s central banking institution — has been continually cautioning clients against the risks related with cryptocurrencies since 2013.

RBI guided all its affiliates to quit managing or giving services to any cryptocurrency-related business.

Taxing cryptocurrencies as commodities may turn out to be a savvy proceed on the government’s part — it gives them a chance to profit off the trading without really loaning them the status of cash or cash that most governments on the planet modest far from.

In the event that past endeavors, for example, the ones made by the Chinese government, are any case — an out and out restriction doesn’t really prevent individuals from trading cryptocurrencies.

Then again, if the government chooses to actualize the tax reflectively, it will mean more than $52 million picks up in tax for the nation on the trading that has occurred since July a year ago