It is interesting to see Bitcoin and new technologies.
One Bitcoin as of now costs more than 15 lakhs and trading in 2 Bitcoins can make turnover above 20 Rs. lakhs.
It will be interesting to know whether GST is applicable on Bitcoin trading or not.
Suppose I buy 2 Bitcoins and then sell them after a year with huge profit, do I have to pay GST?
I answer many question on GST and also do part time consultancy, but this topic being related to Bitcoins, I want to what other expert have to say about this.
GST is applicable on all supplies of goods or services in course or furtherance of business for a consideration.
Government has not specified Bitcoin as currency, that means it is actually asset/property/goods for the purpose of GST.
If you are buying and selling regularly then that becomes your business, you sell for a consideration.
In my opinion yes, GST is payable on Bitcoin.
However when you sell Bitcoin to foreign resident, it becomes export and become a zero rated supply.
But if you are selling Bitcoin to an Indian in India then you have to take GST registration as soon as your turnover cross 20 lakhs in a year.
It is my personal opinion and one should consult personally to financial advisor for taking any action.
Even Bitcoin exchanges have applied to advance ruling authority to examine taxability of Bitcoins under GST.
Unless Bitcoin is declared a currency or government specifically exempts, it will be treated as supply of goods and GST will be applicable.
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