Bybit Imposes 18% GST on Indian Trading Fees

Bybit, a leading cryptocurrency exchange, has announced that it will impose an 18% Goods and Services Tax (GST) on various services and trading fees for its users in India. This decision, effective from July 7, 2025, is in compliance with India's tax laws and will impact a range of Bybit's offerings, including trading fees, withdrawals, staking, and fiat transactions. The GST will be deducted directly from the asset receipts of Indian users, ensuring that the tax is applied transparently and efficiently.

The new tax policy will affect all Indian users of Bybit, including those engaged in derivatives trading. The 18% GST will be applied on top of the existing trading fees and included in the order cost calculation. This means that the fee portion of the Initial Margin (IM) and Maintenance Margin will also be subject to the 18% GST. Bybit has clarified that this tax is only on the trading fees and not on the capital itself, dispelling any misinformation that suggested a 48% tax on Indian users' capital.

This cumulative taxation means traders lose a sizeable portion of fee credits and profits. For example, a ₹1,000 fee would attract ₹180 GST, and with TDS and profit tax considerations, net effective costs rise steeply. Traders must adjust costs or consider alternatives. This includes recalculating trade break-even points, revising strategies to focus on higher-volume or longer-term trades to offset the tax burden, exploring alternatives, and tax planning.

The implementation of the 18% GST on Bybit's services in India is a significant development for the cryptocurrency industry in the region. It underscores the growing regulatory scrutiny and compliance requirements that cryptocurrency exchanges must adhere to in various jurisdictions. Bybit's decision to comply with India's tax laws demonstrates its commitment to operating within the legal framework of the countries it serves, which is crucial for maintaining trust and credibility with its user base.

The impact of this tax on Indian cryptocurrency traders remains to be seen. While the 18% GST may increase the overall cost of trading on Bybit, it is important to note that this tax is a legal requirement and not an additional fee imposed by the exchange. Traders in India will need to factor this cost into their trading strategies and consider the potential impact on their profitability. However, the transparency and clarity provided by Bybit in implementing this tax policy should help users understand the changes and plan accordingly.

In summary, Bybit's decision to charge an 18% GST on trading fees and other services in India is a direct response to the country's tax laws. This move highlights the importance of regulatory compliance in the cryptocurrency industry and sets a precedent for other exchanges operating in the region. While the tax may increase the cost of trading for Indian users, it is a necessary step to ensure that Bybit remains compliant with local regulations and maintains its reputation as a trusted and reliable exchange.