Indian Government to Include Crypto Under GST Law as Investors Yearn Tax Reduction

The cryptocurrency landscape in India is undergoing significant changes. While investors yearn for a reduction in the hefty tax burden, the Indian government is moving towards a more structured approach, potentially including crypto under the Goods and Services Tax (GST) law. This comes after the Union Budget 2025 left cryptocurrency investors and traders underwhelmed, as hopes for a relaxation in taxation policies have been dashed.

The Income Tax Bill, 2025, introduces a structured approach to crypto and digital asset taxation, aiming to regulate the sector while generating government revenue. Understand India’s cryptocurrency tax framework, including GST and direct taxes. Explore classification, compliance, and global comparisons for crypto investors.

The regulatory treatment of cryptocurrency in India has evolved significantly since the Supreme Court’s 2025 judgment in Internet and Mobile Association of India v.RBI. For individuals and entities dealing in Virtual Digital Assets (VDAs), the new regulations are critical. Starting from the financial year , individuals and entities dealing in Virtual Digital Assets (VDAs) must report their crypto gains under a newly defined section in the tax forms. This increased scrutiny aims to bring greater transparency to the crypto market.

With only a week until the 30% tax takes effect, the Indian government chose to address the concerns about the impending measures. According to the document, the government acknowledges the concerns of investors but maintains that the current taxation structure is necessary for revenue generation and market stability. The potential inclusion of crypto under GST would further impact the final tax burden on crypto transactions. Investors are closely watching developments as the government navigates this complex regulatory environment.