The government’s decision would mean that while digital currency would be accepted as virtual currency, buying and selling would be regulated and monitored using the goods and services tax (GST).
The measures would apply from the 2020-21 tax year, and are expected to be brought in by a circular, according to reports.
Cryptocurrencies will not be considered legal tender under the amendment, but they will be accepted as a medium of exchange for some transaction types.
An 18% tax is being examined on all cryptocurrency trading by India's Central Board of Indirect Taxes and Customs, according to reports.
