Tax on sale of digital goods like video game skins

Tax on sale of digital goods like video game skins

Hello Sir/Mam

I am planning to trade video game items due to a new opportunity that is available to me and I am confused how that is taxed and what is the threshold. My concerns are as below. The income will be coming from abroad as FIRC (Bank Transfer)

1. Are they considered Virtual Digital Assets(VDA) and hence taxed at 30%?
2. Do I need to register GST (the maximum sale value can be Rs 2 Lakhs)
3. Or is this income considered Income From Other Sources and taxed at slab rate?
4. Which ITR form do I need to fill?

Also I would like to know what if the consideration value is low (a few thousand rupees)? In that case can I declare it as income from other sources even if it is considered VDA?

Asked 3 days ago in Income Tax

VDA or Not:
- Video game skins or items are not treated as Virtual Digital Assets (VDA) under current Income Tax definitions (which cover crypto, NFTs, etc.).

GST:
- No GST registration needed if total turnover (domestic + export) is below ₹20 lakh in a financial year.

Tax Treatment:
- Income from trading game items can be shown as “Income from Business or Profession” if done regularly, or “Income from Other Sources” if occasional/small.
- Taxed at normal slab rates, not at 30%.