Regarding liability of taxation in Online purchase and sale of Gaming coin

This query is : Resolved

Suresh S. Tejwani (Querist)
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30 July 2024 Online business of gaming coin purchase & sale of Rs. 7 crore in off market and having commission income from such sale of coins.
Whether is it legal or illegal?
what is the GST liability on such sale of Gaming coin ?
Is there any income tax liability of Audit under section 44AB ?
Please give suggestion of above query.

CA ALOK KUMAR

CA ALOK KUMAR (Expert)
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30 July 2024 The online purchase and sale of gaming coins is generally legal, provided it does not contravene local laws regarding online gaming and financial transactions.
GST Liability: Sale of gaming coins attracts GST; typically 18%. With a turnover of Rs. 7 crore, GST registration is mandatory.
Income Tax Liability: Commission income from such sales is considered business income and is taxable.
Audit Requirement: Under Section 44AB of the Income Tax Act, a tax audit is mandatory since the turnover exceeds Rs. 1 crore.
Suggestion: Ensure compliance with GST registration, income tax reporting, and audit requirements. Consult a tax professional for accurate classification and compliance.

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