Answer

1. F

   Facts

   Paying for goods or services using crypto creates two tax events simultaneously:

2. P

   Provisions and law

   • IT Act, Sec 194 (old 115BBH) | GST, Sec 7 (supply) | CBDT Circular
3. A

   Analysis

   For the payer: Using crypto to pay = disposing of crypto = VDA gain taxable at 30% on FMV at the time of payment minus cost. (Exactly like selling crypto for INR and then paying INR.) For the receiver: Receiving crypto in exchange for services = receiving consideration in non-INR form. The INR equivalent is taxable as business income at slab rate. GST is applicable on the service at the INR equivalent of the crypto received. Practical issue: Most freelancers/vendors who accept crypto don't realise they have a 1% TDS obligation if the payer is a specified person (Sec 393, Income-tax Act 2025, old Sec 194S).

4. C

   Conclusion

   Talk to a Savvy for the exact next step on your case.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.