Indian cryptocurrency traders using Bybit will soon face a new tax burden. Starting July 7, 2025, the exchange will begin imposing 18% Goods and Services Tax (GST) on a wide range of crypto-related activities. This move comes as part of Bybit’s compliance with India’s evolving tax framework for digital assets.
18% GST to Apply Across All Crypto Activities
According to the latest announcement, Bybit will deduct 18% GST directly from assets received by Indian users. The tax applies to all fees and transaction spreads, covering a wide range of services:
- Spot and margin trading: GST applies to both trading fees and order execution
- Derivatives trading: GST is charged on transaction fees
- Fiat-related transactions: Includes buying crypto via bank transfers or credit/debit cards
- Withdrawals: Charges may apply even for corrections like reversing wrong deposits
- Staking and earned services: GST to be deducted from service fees on staking rewards
This policy affects over 310,000 Indian users, significantly increasing the effective cost of trading and managing crypto assets on the platform.
How the GST Will Be Calculated
Bybit clarified that the GST will be based on the spread or transaction fee amount. For example, if a user incurs a trading fee of ₹2,000, an additional ₹360 in GST will be applied, bringing the total charge to ₹2,360. Users can view the exact GST charged in their transaction history.
This move aligns Bybit with India’s broader tax regulations for digital asset platforms.
Bybit to Discontinue Legacy Services From July 9
In addition to the tax update, Bybit will retire several services as part of its operational overhaul:
- Crypto Loans: All outstanding loans must be cleared by July 17. Auto-repayment will be enforced thereafter.
- Fiat Bybit Card: All card functionality will end by July 17. New applications are no longer accepted.
- Trading Bots: Automated trading bots will be deactivated on July 9, 2025.
These changes reflect Bybit’s effort to streamline its services in compliance with regional regulations.
Crypto Taxes in India Continue to Tighten
India introduced a 30% capital gains tax and 1% TDS on crypto trades back in 2022. These regulations have already led to a sharp decline in domestic crypto trading volumes. Now, with the added 18% GST, traders may face even greater challenges in maintaining profitability.
The crypto community in India has expressed growing dissatisfaction with the tightening tax framework, and it remains to be seen how this latest update will affect user retention.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss