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GST and Crypto-currency

Heet Shah (Tax Consultant) (4378 Points)

02 August 2020  

Is GST applicable on Crypto-Currencies? How will it be applicable? would it be goods or service?


 8 Replies

Vijayprakash P (1308 Points)
Replied 02 August 2020

Crypto-currency exchanges need to register and pay tax on their earning. Trading may attract 18% GST. Buying and selling of Crypto-currencies will be consider under category of supply of goods.

Heet Shah (Tax Consultant) (4378 Points)
Replied 02 August 2020

How can we classify it as goods it isn't a movable property? Neither an actionable claim?

Heet Shah (Tax Consultant) (4378 Points)
Replied 02 August 2020

Under what classification u tarriff of 18% would b charged?

Pankaj Rawat (GST Practitioner) (51638 Points)
Replied 03 August 2020

The term currency notes are specifically defined in Section 2(i) of FEMA to mean and include cash in the form of coins and bank notes. This definition therefore does not cover Bitcoin (Crypto currency) which are not issued either under the Coinage Act or RBI Act.

So it's not an currency.
supply of bitcoins as goods or property in exchange of other virtual/real goods should technically fall within the ambit of ‘barter transaction’ since bartering is simply an exchange of one good for other goods.[ In GST in term of Section 7 of CGST Act , the barter is to be included in supply & if the consideration is involved & it's for furtherance of Business , then it's taxable in GST (As not Exempted by any Notification) .

Heet Shah (Tax Consultant) (4378 Points)
Replied 03 August 2020

@ Mr.Pankaj

Thanks!!! 

Really u explained it very well!!! even though it needs too much consideration before conclusions seems u covered every aspect to clarify.!!! 

Marigioshi (Marigioshi) (22 Points)
Replied 13 May 2021

Crypto payment has become a very sought-after time and many people are investing but don't know how to earn the money they earned. At first, I lost a few thousand dollars because I didn't know how to get it out, but the broker I was on, you can say that it was a fraud, and it left me without money and without profit. Unpleasant memories, but I got it well on the experience. I learned a lot from this loss of money, and then I realized that he needs to be informed about everything before we enter this area, because it's a risk to lose, and it's not very pleasant. Now i use yuanpaygroup.com and i don't have any problems with payment.

Mnatarajan Muthiah (2 Points)
Replied 26 May 2021

In case if the sale of crypto currency is supply of goods, then what is HSN code for the same

Heet Shah (Tax Consultant) (4378 Points)
Replied 26 May 2021

it's not a supply of goods.


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