TaxTMI 
TaxTMI 
Dear Experts,
Please suggest if an Indian Company is collecting money through ICO for it's own developed Crypto currencies. Is there any GST implication on the money collected from Investors ?
Thank You,
GST treatment on amount collected through ICO (Initial Coin Offering)
04 Jan 2022 
5 Replies 
2228 Views Asked by
GST on ICO proceeds uncertain: regulatory ambiguity produces competing views on supply characterization and taxable treatment.
Whether receipts from an initial coin offering (ICO) attract GST hinges on the characterisation of crypto tokens and regulatory uncertainty. Contributors advance three positions: no GST due to legal vagueness; GST as a service under the inclusive definition covering money conversion; or GST as arising from treatment of tokens as goods. Difficulties arise in fitting ICO proceeds into the clause on use or conversion of money because cryptocurrencies are not currently treated as money, leaving GST applicability unresolved without clearer statutory guidance. (AI Summary)
Whether receipts from an initial coin offering (ICO) attract GST hinges on the characterisation of crypto tokens and regulatory uncertainty. Contributors advance three positions: no GST due to legal vagueness; GST as a service under the inclusive definition covering money conversion; or GST as arising from treatment of tokens as goods. Difficulties arise in fitting ICO proceeds into the clause on use or conversion of money because cryptocurrencies are not currently treated as money, leaving GST applicability unresolved without clearer statutory guidance. (AI Summary)