New GST on Cryptocurrency Transactions in India
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.
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New GST Rate on Cryptocurrency (VDA) in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST treatments for crypto (VDA) participants and common transactions (no compensation cess). Platform/service fees are generally under the standard 18% slab.
| Type of Entity | New GST Rate | Comments |
|---|---|---|
| Individual investor / trader (own account) | — (No GST on buy/sell) | Out of GST scope; 30% income tax on gains + 1% TDS u/s 194S apply |
| Cryptocurrency exchanges (India & offshore) | 18% | On platform fees/commissions (spot, futures, P2P, deposits, withdrawals, subscriptions) |
| Crypto wallet / custody / infra services | 18% | On maintenance, transfer, and other service charges |
| NFT platforms & marketplaces | 18% | On platform/service fees; NFT supplies taxed at residual 18% unless notified |
Note: From July 2025, offshore platforms offering services to Indian users are required to register and charge 18% GST on their fees.
New GST on Bitcoins and Altcoins
| Transaction Type | New GST Rate | Remarks |
|---|---|---|
| Buying/selling crypto by individual (own account) | — (No GST) | GST only on platform/service fee, not on crypto itself |
| Brokerage/service fee by exchange | 18% | Standard services slab; ITC eligibility as per rules |
| P2P marketplace facilitation fee | 18% | GST on platform fee only |
| Crypto-to-crypto trades (own account) | — (No GST) | No GST on swap itself; platform fee at 18% if charged |
Are Cryptocurrencies Considered Goods or Services?
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.
Old GST on Cryptocurrency in India: Who’s Liable?
(Old GST Rates – Applicable Until 21st September)
| Type of Entity | GST Applicability | Comments |
|---|---|---|
| Individual investor/trader | No GST on crypto sales | Income tax applies on capital gains |
| Cryptocurrency exchange | Yes – 18% | On trading service fees/commissions |
| Crypto wallet services | Yes – 18% | On maintenance and transfer fees |
| NFT platforms & services | Yes – 18% | Applies on NFT sales, platform charges |
Old GST on Bitcoins and Altcoins
| 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 | 18% | GST on platform fee only |
| Crypto-to-crypto trades | Exempt | No GST unless platform charges a fee |
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GST Registration and Compliance for Crypto Businesses
- GST registration is mandatory, regardless of turnover
- Charge 18% GST on platform fees, commissions, wallet charges, and services
- Use SAC code 997159 (Other financial services)
- File GSTR-1 and GSTR-3B monthly
- Maintain detailed logs of trades, commissions, and withdrawal records
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.
I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.
Frequently Asked Questions
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Is there GST on cryptocurrency transactions in India?Yes, but only on services provided by crypto exchanges or platforms—not on the direct sale/purchase of cryptocurrencies.
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What is the GST on bitcoins bought by an investor?There is no GST on buying bitcoins directly. Only exchange services are taxed.
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Do crypto exchanges charge GST separately?Yes. Most Indian exchanges apply 18% GST on their trading or transaction fees.
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Are NFTs also covered under GST?Yes. NFTs are classified as Virtual Digital Assets, and platforms dealing in them must charge 18% GST.
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Can GST be claimed as Input Tax Credit for crypto business expenses?Yes, if you're a registered business offering taxable crypto-related services.
