Bybit Imposes 18% GST on Crypto Fees in India

Bybit, a leading cryptocurrency exchange, has declared that it will start enforcing an 18% Goods and Services Tax (GST) on all crypto-related fees for users based in India, effective from July 7, 2025. This decision aligns the platform with India’s evolving tax regulations surrounding virtual digital assets and crypto-related services. The new tax policy will apply to a wide range of Bybit’s core offerings, including spot, margin, and derivatives trading, fiat deposit and withdrawal charges, earn programs, platform service fees, and loan settlements.

The impact of this change will be significant for Bybit’s user base in India, with over 310,000 active users expected to be affected. For instance, a trading fee of ₹2,000 will now incur an additional ₹360 in GST, bringing the total cost to ₹2,360. Similarly, earn rewards such as staking profits will also be subject to GST deductions. These figures are based on the monthly average transaction volumes observed on Bybit India wallets in the second quarter of 2025.

In addition to the new tax policy, Bybit has also announced the discontinuation of several legacy services. Starting from July 9, 2025, crypto loans, trading bots, and the Bybit Card will be phased out. Users are advised to repay any open crypto loans before July 17, withdraw balances or deactivate bots manually, and expect automatic Bybit Card deactivation by July 17. The platform has encouraged users to check GST breakdowns and repayment statuses via their account dashboards to ensure a smooth transition.

The implementation of the 18% GST on crypto fees by Bybit comes as part of India’s broader efforts to integrate cryptocurrencies into its financial legal framework. India first enforced strict crypto taxation in 2022 with a 30% capital gains tax and a 1% Tax Deducted at Source (TDS). The new GST policy is seen as a continuation of these efforts, reflecting the government’s commitment to regulating the crypto industry. Industry analysts believe that this move by Bybit could prompt similar actions from competing platforms, potentially leading to increased costs for users, particularly those employing high-frequency trading strategies that rely on small margins.

Bybit, led by CEO Ben Zhou, will charge 18% GST on trading and service fees in India. The exchange recently re-entered the market and is implementing the new tax statewide. Indian crypto users will face tax deductions on assets during transactions. It impacts various trading modes, including spot and margin trading, derivatives, and fiat purchases. An immediate consequence of the GST is the potential decline in Total Value Locked and trading volumes on Bybit. Indian traders might turn to decentralized exchanges to circumvent the increased tax burden. The financial implications could be significant, leading to reduced transaction activities among Indian users. Community feedback indicates frustration at the growing tax rates for crypto transactions. Historical cases, like the 2022 Indian regulatory actions, support the likelihood of declining trading volumes.

Future financial and regulatory outcomes might see more Indian users transitioning to non-local platforms. The evolving legal landscape could influence the cryptocurrency market structure. Industry observers suggest a critical look at compliance strategies in reaction to the tax implementation. The new GST rule will apply to all asset transfers between users and merchants on the trading platform. The tax will be taken directly from the assets users receive when they trade on the platform.