Thanks for your reply avikz! I have a few more questions if you don't mind...

1. I am a freelancer but normally I'd be liable to register for GST because my income in INR would be more than 20lpa. From what I know, export of services under GST is zero rated but I'll need to furnish proof that I'm receiving money in a foreign currency. In case of getting paid in Bitcoin, that would not be possible since I won't receive anything in my bank account. Would you know anything more about how I can handle this?
2. When paying TDS and income tax, do you think I should pay it based on my invoice amount as opposed to the value of BTC?
3. Also, if I convert BTC to INR in the future, will there be tax issues at that point since I'll be receiving money in my bank account then?
4. RBI has said that bitcoin is not legal tender, so will I be doing something illegal by receiving money as BTC?

Thanks