Effective July 7, 2025, Bybit, a top worldwide cryptocurrency exchange, has started imposing an 18% Goods and Services Tax (GST) on service and trading fees for all its Indian consumers. Spot, margin, and derivatives trading, fiat transactions, crypto withdrawals, on-chain staking fees, auto conversions, liquidations, and OTC and Bybit Pay transactions are among the many services covered by this tax. The GST is instantly subtracted from consumers' assets at the point of purchase, computed according to the fee or spread for every service.
Bybit's project is meant to address India's increasing concentration on crypto tax compliance. The nation already levies a 30% tax on cryptocurrency gains and a 1% Tax Deducted at Source (TDS) on every trade. Bybit's compliance with these rules is by Indian GST rules, which oblige foreign digital asset service providers to collect GST from services consumed by Indian citizens. Additionally, to adhere more to legal requirements, Bybit has stopped certain services for its Indian consumers, including crypto loans, Bybit Card, and trading bots.
More than 310,000 active Indian users are expected to be impacted by these changes, which will result in greater trading expenses and help to further magnify the already heavy tax load on cryptocurrency transactions in India. This action highlights the constant obstacles and changing regulatory environment for Indian market-based crypto users and exchanges.
