Question about opening current account for bitcoin trading

[Saleemlala]

Hi guys,

So off late, I've been buying and selling a lot of cryptocurrency on some of the P2P exchanges like koinex loop (now shut), wazirx and bitbns.

I was using my personal account for this till now, but I believe that the volumes are becoming too much. Hence, I was thinking about opening a current account for trading as I've seen several other people do. My question is, what should I register for under gst, as I can turn around 20L in 2-3 days just trading 1btc a day roundtrip. Also, how would I go about filing this gst return as there is no gst on bitcoin yet.

Would appreciate any advice and experience.

[1714620247]

1714620247

[1714620247]

1714620247

[vikoheftjeri]

I trade large volumes too, but I only convert to INR when I have to pay bills, etc rest is always in USDC / BTC. I think the situation for India is too shaky at the moment and in some cases you are automatically flagged for dealing in crypto (some of my friends have been locked out of their own bank!).

To answer your question: If you are moving large BTC >-> INR to / from your bank, you should open a current account, this will only remove of certain limitations in the savings account.

Regarding taxes, you should consult a CA. I used ClearTax and they were very helpful for gst / tax.

TIP: For safe and anonymous P2P exchange, you can try https://megadeals.io.

[webtricks]

Hi guys,

So off late, I've been buying and selling a lot of cryptocurrency on some of the P2P exchanges like koinex loop (now shut), wazirx and bitbns.

I was using my personal account for this till now, but I believe that the volumes are becoming too much. Hence, I was thinking about opening a current account for trading as I've seen several other people do. My question is, what should I register for under gst, as I can turn around 20L in 2-3 days just trading 1btc a day roundtrip. Also, how would I go about filing this gst return as there is no gst on bitcoin yet.

Would appreciate any advice and experience.

Why do you want to register for GST?
You are not running any business. You are just buying and selling assets and making capital gains. You are not required to register under GST since there is no GST liability applicable on you.
It is good if you open separate account from your personal account for trading purpose however it is not mandatory to open current account. Current account is necessary if your business is making large number of cash deposits and cash withdrawals. But since you are using P2P networks, all transactions are rooted directly to your bank account. You can go with saving account too. However, if you receive and send over 10 transactions daily then better go with current account.

[playboy654]

When I asked about opening a current account for crypto trading they said you need to have GST tin number for having current account so literally you cannot open current account in India for crypto trading and also RBI said your account will be blocked if you are using it for buying or selling cryptos.

[TigerMart]

Why do you want to register for GST?

Trade volume over 20L will definitely attract GST.

When I asked about opening a current account for crypto trading they said you need to have GST tin number for having current account so literally you cannot open current account in India for crypto trading and also RBI said your account will be blocked if you are using it for buying or selling cryptos.

You must get current a/c without GST number. Not every business do 20L+ volume in a year.

[playboy654]

Why do you want to register for GST?

Trade volume over 20L will definitely attract GST.

When I asked about opening a current account for crypto trading they said you need to have GST tin number for having current account so literally you cannot open current account in India for crypto trading and also RBI said your account will be blocked if you are using it for buying or selling cryptos.

You must get current a/c without GST number. Not every business do 20L+ volume in a year.

Yes I know that there is something called personal current account which only needs pan and aadhar card to get access and minimum balance of 50,000 INR but my question is will our bank allow us to use that account for crypto trading? When RBI banned it.

[deadley]

When I asked about opening a current account for crypto trading they said you need to have GST tin number for having current account so literally you cannot open current account in India for crypto trading and also RBI said your account will be blocked if you are using it for buying or selling cryptos.

You can't open even current account for bitcoin trading because bank transactions is barred for any transactions of crypto.

That's why mostly exchanges closed in India.

[playboy654]

When I asked about opening a current account for crypto trading they said you need to have GST tin number for having current account so literally you cannot open current account in India for crypto trading and also RBI said your account will be blocked if you are using it for buying or selling cryptos.

You can't open even current account for bitcoin trading because bank transactions is barred for any transactions of crypto.

That's why mostly exchanges closed in India.

Yes I did explained the same thing in my above post but you know faking the documents in India is not a big task so people who can use their current account for bitcoin trading and can use other documents for filing the taxes.

[deadley]

When I asked about opening a current account for crypto trading they said you need to have GST tin number for having current account so literally you cannot open current account in India for crypto trading and also RBI said your account will be blocked if you are using it for buying or selling cryptos.

You can't open even current account for bitcoin trading because bank transactions is barred for any transactions of crypto.

That's why mostly exchanges closed in India.

Yes I did explained the same thing in my above post but you know faking the documents in India is not a big task so people who can use their current account for bitcoin trading and can use other documents for filing the taxes.

It's not about faking documents, you can still transact annoymously thorugh any bank account, like mostly P2P users doing, but when if bank just get hint, you got funds because of btc trading, they will close your account and report to RBI and Income Tax Authority. There is no exception on this.

[playboy654]

When I asked about opening a current account for crypto trading they said you need to have GST tin number for having current account so literally you cannot open current account in India for crypto trading and also RBI said your account will be blocked if you are using it for buying or selling cryptos.

You can't open even current account for bitcoin trading because bank transactions is barred for any transactions of crypto.

That's why mostly exchanges closed in India.

Yes I did explained the same thing in my above post but you know faking the documents in India is not a big task so people who can use their current account for bitcoin trading and can use other documents for filing the taxes.

It's not about faking documents, you can still transact annoymously thorugh any bank account, like mostly P2P users doing, but when if bank just get hint, you got funds because of btc trading, they will close your account and report to RBI and Income Tax Authority. There is no exception on this.

P2P transactions can work for small scale users but if someone is doing bitcoin trading as full time job will get into attention of banks.

Sometime people write remarks as bitcoin will be a huge issue later.