Bybit Imposes 18% GST on All Transactions From July 7

Bybit, a global cryptocurrency exchange, recently announced that it will be applying 18% Goods and Services Tax (GST) for Indian crypto users, starting from July 7, 2025. The GST amount will be directly deducted from the assets received. Moreover, the exchange also put an end to legacy products and services.

Bybit Introduces an 18% GST on Crypto in India

Under the new GST regulation in India, Bybit will apply GST to all transfers involving users and merchants, and the tax will be calculated based on the spread. The chargeable events include:

• Spot and margin trading: Tax will be based on fees and orders

• Derivatives: Tax will be based on fees

• Fiat-related transactions: Buying crypto via bank or card

• Withdrawals: Probably recovering the wrong deposit will also be taxed

• Staking: Services fees in dealing and earned products will be taxed

What to Expect From the New GST?

Bybit reported that over 310,000 active Indian users will be impacted by the new 18% GST. For example, on a ₹2,000 trading fee, users will have to pay ₹360 in GST, making the total tax amount ₹2,360. Users will be able to see the amount of GST charged under their transaction history, alongside the respective fees, as reported by Bybit.

Bybit Discontinues Legacy Products

Alongside the implementation of GST, Bybit is also launching the termination of some products and services from July 9, 2025, 8 AM UTC.

• Crypto Loans: Customers are required to settle their existing loans before July 17, and auto-repayment will be triggered for any outstanding borrowing in the account.

• Fiat- Bybit Card: Existing cards will be blocked from making new transactions from July 17; no new card applications available.

• Trading Bots: Bots will automatically be terminated on July 9th under the new Bybit guidelines.

Final Thought

India first enforced strict crypto taxation in 2022 with a 30% capital gains tax and 1% TDS on every transaction. The users were already unhappy with the harsh tax regime, which resulted in a decline in trading activity and dissatisfied customers. Now, with an additional tax, the crypto users’ reaction remains to be seen.