Bybit Imposes 18% GST on Indian Users, Discontinues Key Services

Bybit, a leading cryptocurrency exchange, has implemented an 18% Goods and Services Tax (GST) on all trading and service fees for Indian users, effective from July 7, 2025. This tax will be automatically deducted from user assets and applies to a variety of services, including spot trading, derivatives, margin trading, fiat-related transactions, crypto withdrawals, incorrect deposit recoveries, staking, and Bybit Pay transfers. The GST will be calculated based on the fee or spread, depending on the type of transaction, and users will be able to see the deducted tax in their transaction history.

In addition to the new tax, Bybit has announced the discontinuation of several key services for Indian users. Starting from July 9, the exchange will phase out legacy crypto loans, which users must repay by July 17. Any remaining balances will be auto-repaid after this deadline. The Bybit Card, which celebrated its two-year anniversary, will stop accepting new applications, and existing cards will be blocked from new transactions on July 17 before being deactivated. Furthermore, several automated trading bots will be discontinued, marking a significant shift for Indian users who rely on these services for daily operations.

Indian crypto users already face a 30% capital gains tax on profits from digital assets and a 1% tax deducted at source (TDS) on each transaction. The introduction of an 18% GST further increases the overall cost of crypto trading. The country has been pushing for tax cuts to boost crypto activity, but recent enforcement efforts by the Income Tax Department have added pressure. The government’s compliance campaign has flagged users for underreporting income, using data from exchanges to identify mismatches in tax returns. Losses cannot be offset, and no deductions are allowed under current law.

Over 310,000 Indian users on Bybit are expected to be affected by the new GST rule. Industry groups have raised concerns that higher taxes could discourage participation and may drive users to decentralized platforms to avoid the growing costs. The crypto industry has repeatedly requested tax relief, pointing to the sector’s growth potential. In May, industry bodies urged the government to reduce the current tax rates, citing examples from other countries with more supportive policies. Calls for reform continue as India evaluates its position in the global digital asset landscape.