Bybit adds 18% GST for Indian users amid broader India crypto tax crackdown

Bybit has begun applying an 18% GST on service and trading fees for Indian users starting July 7, further intensifying the country’s already heavy crypto tax burden.

Starting today, Bybit will apply an 18% Goods and Services Tax on service and trading fees for all Indian users, according to the exchange’s July 4 announcement. This new GST charge will be deducted directly from users’ assets across multiple services, including spot and margin trading, derivatives trading, fiat-related transactions such as buying crypto with bank cards, crypto withdrawals (including cases of recovering incorrect deposits), staking, and transfers via Bybit Pay. The tax is calculated based on fees or spreads, depending on the transaction type, and will be shown in users’ transaction histories.

In addition to the GST implementation, Bybit will discontinue several products for Indian customers starting July 9. These include legacy crypto loans, which users must settle by July 17, after which auto repayment will be enforced for any outstanding balances. The Bybit Card will no longer accept new applications, and existing cards will be blocked from new transactions from July 17, followed by deactivation. Various trading bots will also be terminated on July 9.

India already enforces a strict crypto tax regime, including a 30% capital gains tax on profits and 1% TDS on each transaction since 2022. Recently, the Income Tax Department ramped up enforcement, targeting users for underreporting crypto income through its “NUDGE” compliance campaign. Taxpayers have been flagged for mismatches between their returns and data from exchanges. Under current rules, crypto losses can’t be offset, and deductions aren’t allowed.

Now, with the additional 18% GST on service and trading fees, the overall tax burden on crypto transactions in India increases even more, raising concerns about its potential impact on market participation and user sentiment. Over 310,000 active Indian users on Bybit are expected to be affected by this new tax structure.