GST and Cryptocurrency in 2025: What Investors Must Know
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- by MI September 18, 2025
As India tightens regulations around cryptocurrency and digital assets, taxation has become a key concern for investors. In 2025, under GST 2.0, cryptocurrency transactions are coming under the indirect tax net. This blog explains how GST applies to cryptocurrency, what investors must know, and compliance tips.
Are Cryptocurrencies Covered Under GST 2.0?
Yes. While cryptocurrencies were earlier treated as virtual digital assets under direct taxation, GST 2.0 extends its scope to cover trading, exchanges, and services related to crypto. Both individuals and businesses dealing in crypto must be aware of these changes.
GST Rates on Cryptocurrency Transactions in 2025
| Type of Transaction | GST Rate 2025 | Remarks |
|---|---|---|
| Buying & Selling on Exchanges | 18% | Standard GST rate applies on transaction fees |
| Crypto Wallet & Custody Services | 18% | GST applies on service charges |
| Mining Services | 18% | Applicable if services are provided for consideration |
| International Crypto Transactions | Zero-Rated / IGST | Treated as exports, subject to conditions |
Key Compliance Rules for Crypto Investors
- Crypto exchanges must register under GST if turnover exceeds threshold
- GST applies to transaction/service fees, not the crypto asset value itself
- Investors should collect GST-compliant invoices from exchanges
- International transactions may qualify for zero-rated supply (subject to RBI/GST norms)
- GST returns must clearly reflect crypto-related transactions under services
Challenges in GST Compliance for Cryptocurrency
- Classification confusion: Is crypto a currency, security, or commodity?
- Volatility makes valuation tricky for tax purposes
- Cross-border transactions require additional scrutiny
- Lack of uniform global taxation rules creates compliance complexity
Conclusion
The year 2025 marks a turning point for cryptocurrency taxation in India. With GST 2.0 covering crypto-related services and transactions, investors must stay vigilant about compliance. Keeping accurate records, understanding GST implications, and consulting tax professionals will ensure smooth investing in the digital asset space.
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