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GST On Cryptocurrency Trading in India

Cryptocurrencies have gained a lot of prominence because of their decentralized nature and the potential for a significant return on investment. But you need to know that the regulatory landscape surrounding cryptocurrencies is changing with every passing day. The GST rate for crypto could is between 18 to 28 percent as of now. This article will help you to understand about GST on cryptocurrency trading in India.

The finance minister announced a flat 30% tax on income from cryptocurrency in India in their union budget in 2022. The implication of GST is currently on the percentage charged on Bitcoin.

Basics about Crypto currencies

Cryptocurrency is ideally a digital currency that uses cryptography for secure financial transactions. You need to know that it is decentralized. It also means that it is not controlled by any government or financial institution. One of the most prominent and earliest cryptocurrencies that you should know about is Bitcoin. It was developed back in 2009. Post that there were several cryptocurrencies developed.

The taxation of cryptocurrency transactions is challenging and evolving in several countries. It all depends on the jurisdiction. In some countries, cryptocurrency can be treated as a capital asset, but in some countries, it is considered a currency.

Taxation of Cryptocurrency:

The taxation of cryptocurrency transactions is challenging and evolving in several countries. The treatment of cryptocurrency for all tax purposes can vary greatly. It all depends on the jurisdiction. In some countries, cryptocurrency can be treated as a capital asset, but in others, it is considered a currency.

But you might consider whether goods and services tax apply to cryptocurrency transactions.Currently, it is applicable in countries like Australia, Canada, and India. You can say that a supply is to be made if it is made within the country.

You need to charge GST and remit GST to the government if GST applies to you and you are a supplier. This can offset against any GST required to pay for your supplies. Furthermore, if you are struggling with legal formalities included in the GST registration, then we KcorpTax have a team of GST experts at abstract who can help you to make the process smooth.

GST Applicability on Cryptocurrency:

The applicability of GST on cryptocurrency trading in India is a significant issue in India especially. The Central Board of Indirect Taxes and Customs has already issued A clarification stating that currencies are not considered as currency, but they are generally regarded as goods and services.
Furthermore, if you mind or sell currencies as a part of your business or trade, then you are required to register for GST and pay tax on the income earned.

What Must You Know About Cryptocurrency or Digital Assets Under the GST Act?

You must know cryptocurrency is not a digital asset in the GST Act. Still, according to the Finance Bill, it is a virtual digital asset or VA. In case of any data code number or token created using cryptographic methods that work as a digital representation of the value traded.

  • You can apply for any financial transaction. The resources would be electronically stored or transferred to any other digital asset.Listed by the central government, or a non-fungible token will be included in the VDA.
  • If you buy cryptocurrency as an investment, then the purchase of cryptocurrency will not be linked to GST. This is because purchasing capital assets like cryptocurrency is not considered supply for GST purposes.
  • But if you sell cryptocurrency that you have held as an investment, then it is not a GST. This is because the sale of a capital asset like cryptocurrency cannot be considered a supply for GST purposes.
  • If you use cryptocurrency to make payments for goods or services, then this transaction will attract GST. This is because the price will be considered in exchange for the supply of goods or services.
  • If you deal in cryptocurrency, you are selling it; then you must collect and remit GST from the buyers.


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When it comes to looking for the best for the experts looking for the right GST on Cryptocurrency trading in India, then Kailadevi Corporate Services is the right partner for the same. The experts here have 15 years of experience in this domain, and can be surely trusted.