Bybit Imposes 18% GST on Indian Users, Discontinues Services

Bybit, a prominent cryptocurrency exchange, has announced significant changes for its Indian users, introducing an 18% Goods and Services Tax (GST) on various services and trading fees. This move comes as part of Bybit's compliance with India's taxation framework, which mandates that Virtual Digital Asset Service Providers charge an 18% GST on service and trading fees for Indian residents. The new tax will be effective from July 7, 2025, and will apply to a wide range of services, including spot and margin trading, derivatives, fiat transactions, and crypto withdrawals.

For instance, a user selling 1 BTC at 100,000 USDT will now receive 99,882 USDT after a combined deduction of 118 USDT in fees and GST. This tax is in addition to the existing 30% tax on crypto profits and the 1% Tax Deducted at Source (TDS). The GST will also apply to Unified Trading Accounts for conversion activities, native staking via On-Chain Earn, and various other transactions.

In addition to the new tax, Bybit will also be discontinuing several services in India starting from July 9. These include legacy crypto loans, the Bybit card, and multiple trading bots such as Spot Grid, DCA, and Futures Combo. Cardholders will be blocked from new transactions by July 17, and outstanding loans will be auto-repaid. These changes are part of Bybit's broader compliance strategy, aimed at adhering to the evolving regulatory landscape in India.

While Bybit's actions are a response to regulatory requirements, some crypto advocates have expressed concerns that the rising tax burdens may hinder the growth of India's crypto economy. The additional 18% GST, combined with the existing taxes, could potentially discourage long-term adoption and participation in the crypto market. This situation highlights the delicate balance between regulatory compliance and fostering a thriving digital asset ecosystem.