New GST on Cryptocurrency Transactions in India
- Cryptocurrencies like Bitcoin and Ethereum are popular in India, leading to concerns about taxation and regulation.
- The Indian government has set an 18% GST on services by crypto exchanges, wallets, and NFT platforms, but not on buying or selling crypto itself.
- Individual traders are exempt from GST on crypto trades, but must pay a 30% income tax on gains and 1% TDS.
- Offshore platforms offering services to Indian users must register and charge 18% GST starting July 2025.
- Crypto businesses must register for GST, charge 18% on services, and file monthly returns to ensure compliance.
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.
Experience the power of Expert Accounting
Join our guided walkthrough to see how BUSY can transform your business operations.
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 |
Type of Entity
New GST Rate
Comments
Type of Entity
New GST Rate
Comments
Type of Entity
New GST Rate
Comments
Type of Entity
New GST Rate
Comments
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 |
Transaction Type
New GST Rate
Remarks
Transaction Type
New GST Rate
Remarks
Transaction Type
New GST Rate
Remarks
Transaction Type
New GST Rate
Remarks
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 |
Type of Entity
GST Applicability
Comments
Type of Entity
GST Applicability
Comments
Type of Entity
GST Applicability
Comments
Type of Entity
GST Applicability
Comments
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 |
Transaction Type
GST Rate
Remarks
Transaction Type
GST Rate
Remarks
Transaction Type
GST Rate
Remarks
Transaction Type
GST Rate
Remarks
Get a Free Demo – Best Billing and Invoicing Software
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.
