BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
Cryptocurrencies like Bitcoin, Ethereum, and other virtual assets have gained massive popularity in India over the past few years. But with this rise comes a growing concern around taxation and regulation. While income tax on crypto gains is already in place, what about GST? In this guide, we break down the gst on cryptocurrency, whether it applies to traders, exchanges, or platforms, and how the government views digital currencies under its tax lens.
Under Indian GST law, goods are defined as movable property, and services cover anything other than goods. Since cryptocurrencies are not legal tender but are still exchanged for value, they are treated as goods or intangible assets in many contexts.
So, transactions involving cryptos are taxable under GST, but the method of taxation varies depending on the nature of the transaction.
| Type of Entity | GST Applicability | Comments |
|---|---|---|
| Individual investor/trader | No GST on crypto sales | Income tax applies on capital gains |
| Cryptocurrency exchange | Yes – GST @ 18% | On trading service fees/commissions |
| Crypto wallet services | Yes – GST @ 18% | On maintenance and transfer fees |
| NFT platforms & services | Yes – GST @ 18% | Applies on sale of NFTs, platforms charge |
| Transaction Type | GST Rate | Remarks |
|---|---|---|
| Buying/selling crypto by individual | Exempt | Treated like exchange of assets |
| Brokerage fee by exchange | 18% | Platform charges service fee |
| Peer-to-peer exchange platform (like P2P) | 18% | On platform fee only |
| Crypto-to-crypto trades | Exempt | No GST unless platform charges a fee |
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Understanding the gst on cryptocurrency in india is key for crypto businesses, investors, and tax professionals. While trading in digital currency may seem straightforward, the tax treatment on services like exchanges, wallet management, and NFT platforms must be closely followed for compliance.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.