Crypto-to-goods payment: paying for services in crypto

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

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).