Indian Crypto Users Slammed With 18% GST as Bybit Complies With Tax Regulation

Cryptocurrency exchange Bybit is introducing higher transaction costs for Indian users, as it prepares to implement an 18% Goods and Services Tax across its crypto services and discontinues select products. Bybit announced on July 4 that it will begin applying India’s 18% GST on various service and trading fees beginning July 7. The company stated:

In accordance with the India taxation framework, Virtual Digital Asset Service Providers will be required to charge a 18% GST (Goods and Services Tax) on service fees and trading fees to residents of India.

“In compliance with this requirement, Bybit will be implementing the GST charge on below services starting from Jul 7, 2025,” the crypto exchange affirmed. The tax will apply across spot and margin trading, derivatives, fiat transactions, and crypto withdrawals, with deductions taken directly from assets received. 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.

Unified Trading Accounts will incur GST on conversion activities, including auto repayments and liquidations. Native staking via On-Chain Earn will also see GST deducted from service fees on interest payouts, though APR Boost rewards remain unaffected.

Crypto withdrawals, including those recovering incorrectly deposited assets, will face GST on withdrawal fees. For transactions across Bybit Pay, fiat buy/sell options, and OTC trading, the company clarified:

GST applies to all transfers involving users and merchants and is calculated based on the spread.

GST will be included in the order cost calculation, and the fee components of Initial Margin and Maintenance Margin will rise accordingly, Bybit noted. The 18% GST is on top of the existing 30% tax on crypto profits and the 1% Tax Deducted at Source (TDS).

From July 9, Bybit will also disable several services in India. Legacy crypto loans, the Bybit card, and multiple trading bots—such as Spot Grid, DCA, and Futures Combo—will no longer be supported. Cardholders will be blocked from new transactions by July 17, while outstanding loans will be auto-repaid. These adjustments reflect Bybit’s broader compliance strategy, although some crypto advocates argue that rising tax burdens may undercut the growth of India’s crypto economy and discourage long-term adoption.