New GST on Cryptocurrency Transactions in India
- GST on cryptocurrency itself is not charged on buying, selling or transferring crypto assets by investors. GST applies to taxable services provided by crypto exchanges, wallets and other platforms.
- Crypto exchange fees, brokerage charges and other platform service charges generally attract 18% GST, based on the applicable service classification.
- Income tax provisions for Virtual Digital Assets (VDAs), including tax on crypto gains and applicable TDS requirements, are separate from GST.
- Crypto businesses providing taxable services must follow GST compliance requirements, including registration, invoicing and return filing where applicable.
- Businesses and traders should maintain proper records of crypto-related transactions for tax and compliance purposes.
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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GST Treatment on Cryptocurrency (VDA) in India
There was no separate GST rate change for cryptocurrency transactions on 22 September 2025. GST does not apply to the buying or selling value of cryptocurrencies by investors. However, crypto exchanges, wallet providers and other platforms may charge 18% GST on taxable service fees such as trading fees, commission or subscription charges.
GST Rate on Cryptocurrency Transactions and Services
| Type of Transaction / Service | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 | Remarks |
|---|---|---|---|
| Buying or selling cryptocurrency by individual investor (own account) | No GST | No GST | GST is not charged on the crypto transaction value |
| Cryptocurrency exchange trading fee / commission | 18% | 18% | GST applies on exchange service charges |
| Crypto brokerage or platform fee | 18% | 18% | Applicable on the fee charged by the platform |
| Crypto wallet maintenance or custody service fee | 18% | 18% | GST applies on taxable wallet-related services |
| NFT marketplace/platform service fee | 18% | 18% | GST applies on platform/service charges |
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Note: The GST rate applies to the service fee charged by crypto platforms, not the value of cryptocurrency purchased, sold or exchanged.
GST on Crypto Trading in India
| Transaction Type | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 | Remarks |
|---|---|---|---|
| Spot crypto trading by investor | No GST | No GST | Transfer/trading of crypto asset itself is not charged with GST |
| Crypto-to-crypto exchange by investor | No GST | No GST | GST does not apply to asset swap value |
| Exchange trading charges | 18% | 18% | GST applies on the exchange fee |
| P2P marketplace facilitation fee | 18% | 18% | GST applies on platform charges |
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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.
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.
