Bybit to Charge 18% GST for Indian Crypto Users

1. Introduction of 18% GST for Indian Users

Global cryptocurrency exchange Bybit has announced that it will begin charging an 18% Goods and Services Tax (GST) on all trading and service fees for Indian users, starting July 7, 2025.

This move aligns with new Indian regulatory requirements for virtual digital asset (VDA) service providers and reflects India’s push for compliance from international platforms.

2. Services Affected by the New GST Rule

The 18% GST will apply to a wide range of Bybit services used by Indian residents, including:

Trading fees across spot, margin, and derivatives, Fiat currency transactions, Crypto withdrawals, Staking services, Bybit Pay features, Over-the-Counter (OTC) trading, Asset recovery services, Automatic repayments, Liquidation under Unified Trading Accounts (UTA), Interest-bearing financial products

3.Additional Platform Changes for Indian Users

Bybit also announced that it will:

Terminate its digital asset lending service

Discontinue trading bot functionalities, including:

Spot Grid Bot

Dollar-Cost Averaging (DCA)

Futures Combo Strategies

Impose restrictions on Bybit Card transactions in India starting November 17, 2025

4.Impact on Indian Crypto Investors

Indian users already face a 30% capital gains tax on profits from digital asset transactions and 1% TDS (Tax Deducted at Source).

The introduction of 18% GST on top of these taxes significantly raises the total cost of trading, making it less financially attractive.

Experts warn that this could:

Reduce participation from retail investors

Slow down industry growth

Push users toward less-regulated platforms or offshore exchanges

5. User Base and Communication

The platform confirmed the change via official notifications to its user base.

The update will impact an estimated 310,000 active Indian users.

6.Industry Reactions and Observations

Market analysts suggest that the move may lead to a drop in trading volumes on Bybit in India.

Some believe users may seek alternatives that offer lower tax burdens.

Industry observers caution that this taxation model may discourage new investor participation and hamper innovation in India's growing digital asset space.

7. Reflection of India’s Tax Policy Direction

Bybit's decision aligns with India’s evolving indirect tax policy, which now treats foreign crypto service providers the same as domestic platforms.

The combined impact of 30% capital gains tax, 1% TDS, and 18% GST illustrates the stringent regulatory stance of the Indian government toward the crypto sector.