Bybit Imposes 18% GST on Indian Trading Fees from July 2025

Bybit, a global cryptocurrency exchange, has announced that it will impose an 18% Goods and Services Tax (GST) on all trading and service fees for its users in India starting from July 7, 2025. This move is in compliance with the local tax regulations in India. The new tax will apply to various trading activities, including spot and margin trading, derivatives, fiat-related transactions, withdrawals, and staking services. The GST amount will be directly deducted from the assets received by the users.

This development comes at a time when the Indian government has been increasingly focusing on regulating the cryptocurrency sector, aiming to bring it under the ambit of existing tax laws. The imposition of the 18% GST on trading fees and services is significant as it adds to the existing tax burden on cryptocurrency transactions in India. Currently, cryptocurrency profits are subject to a 30% tax, and there is also a 1% Tax Deducted at Source (TDS) on such transactions. The additional 18% GST will further increase the cost of trading for Indian users on the Bybit platform. This could potentially impact the trading volumes and the overall activity on the exchange, as users may seek alternative platforms with lower tax implications.

Bybit has also announced the discontinuation of certain legacy products and services from July 9, 2025. These include crypto loans, fiat cards, and trading bots. Customers are required to settle their existing loans before July 17, and auto-repayment will be triggered for any outstanding borrowing in the account. Existing fiat cards will be blocked from making new transactions from July 17, and no new card applications will be available. Trading bots will automatically be terminated on July 9th under the new Bybit guidelines.

The decision by Bybit to impose the 18% GST is a clear indication of the exchange's commitment to adhering to local tax laws and regulations. It also highlights the challenges faced by cryptocurrency exchanges operating in jurisdictions with stringent tax regimes. The move is likely to prompt other exchanges to review their tax policies and ensure compliance with local regulations. This could lead to a more standardized approach to taxing cryptocurrency transactions across different platforms, providing clarity and stability for users and regulators alike.

The impact of the 18% GST on Bybit's user base in India remains to be seen. While some users may continue to trade on the platform despite the increased costs, others may explore alternative exchanges that offer lower tax rates or more favorable trading conditions. The competitive landscape in the cryptocurrency exchange market is dynamic, and exchanges are constantly vying for user attention and market share. Bybit's decision to impose the GST could either solidify its position as a compliant and trustworthy platform or drive users to seek out more cost-effective alternatives.

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.

In conclusion, Bybit's imposition of an 18% GST on all transactions for its Indian users from July 7, 2025, is a significant development in the cryptocurrency tax landscape in India. It underscores the need for exchanges to comply with local tax regulations and highlights the potential impact on user behavior and market dynamics. As the regulatory environment for cryptocurrencies continues to evolve, exchanges and users alike will need to adapt to ensure compliance and optimize their trading strategies.